Everi Holdings Inc, a US-based provider of digital casino products and player loyalty solutions, says it has successfully renegotiated and revalued a US $ 735.5 million senior term loan under his credit agreement.
The amended credit agreement provides that the LIBOR component of the interest rate applicable to the senior term loan is reduced by 25 basis points to 0.75% instead of 1.00% and the base rate component to 1.75% instead of 2.00%.
The amended credit agreement includes six months of 101 soft call protection, Everi added, while the loan maturity date remains unchanged at May 9, 2024.
“This revaluation of our senior term loan reflects the significant progress we are making in strengthening our operating results,” said Mark Labay, executive vice president and chief financial officer of Everi.
“At current rates and with our existing balance on the senior term loan outstanding, the 25 basis point reduction in our LIBOR floor is expected to generate cash interest rate savings of $ 1.8 million. Americans on an annualized basis.
“This price revision brings another significant improvement to our capital structure following similar activities over the past few years which have significantly reduced the weighted average interest rate on our outstanding debt securities. These savings enhance our ability to generate higher free cash flow in future periods, providing opportunities for progressive deleveraging and creating new value for our shareholders. “