Manufacturer and supplier of gaming products PlayAGS plans to refinance its outstanding debt and expand its revolving credit facility capacity, the company announced on Thursday. The company intends to fully refinance its $521.2 million and $93.6 million term loan facilities due 2024, according to a press release on the matter.
As part of the refinancing transaction, AGS intends to seek a new $575 million term loan facility due 2029 and use a portion of the cash on its balance sheet, the company further announced.
Additionally, the company intends to refinance and upsize its undrawn $30 million Revolving Credit Facility due 2023 to a $40 million Revolving Credit Facility due 2027, which is “expected to be undrawn at closing.”
The newly-announced plans to refinance the company’s outstanding credit facilities and extend debt maturities follow the report earlier this month of preliminary financial results for Q4 and financial year 2021. The company first said it would seek to refinance at that time.
The company expects total revenue between $68.4 million and $70.8 million for Q4, up from $46.6 million the prior year; and revenue within the $258.6 million-$261 million range for the whole fiscal year, up from $167 million in 2020.
The business also expects a net loss in the range of $11.6 million to $6 million for Q4, versus a net loss of $17.2 million in the same quarter in 2020. In terms of the full year, a net loss in the range of $24.7 million to $19.2 million is anticipated, vastly different from an $85.3 million loss in 2020.
“Our preliminary fourth quarter 2021 financial results further reflect the operating momentum we are witnessing across all three segments of our business,” said AGS President and Chief Executive Officer David Lopez on January 18. “I continue to believe we have the best lineup of new products in our company's history and am excited about the opportunities that lie ahead.'
The information provided thus far for the fourth quarter and fiscal year 2021 is preliminary and has not yet been reviewed or audited by the company’s auditors, explains AGS. The company, currently in the process of completing its audit for the period, anticipates releasing final results for Q4 and FY2021 “on March 10, 2022, after the market close.”
The business also introduced a net leverage target for the year. Supported by the current momentum being witnessed across all three business segments -EGM, table products and interactive-, AGS is targeting to reach a net leverage ratio of less than 4.0x by December 31, 2022.