International edition
September 29, 2020

Including lower pricing and relaxed restrictions on share repurchases

Bally announces the amendment of its credit agreement

(US).- Bally Technologies announced it has amended its existing credit facility and entered into a new, four-year us$ 75 million revolving credit facility led by Bank of America Securities LLC and Wells Fargo Securities LLC.

We are extremely pleased with the amendment of our existing credit facility and the new us$ 75 million revolver, which brings our total undrawn revolver capacity to us$ 150 million. As a result of our strong and continually improving credit profile, we obtained a 50 basis point reduction in the LIBOR spread on our term loan and the revolving credit facilities, as well as increased flexibility in terms of our allowable leverage ratio, and increases in our restricted payments and acquisition baskets. With these revolving credit facilities, cash on hand, expected net proceeds from the sale of the Rainbow Casino, and cash flows generated from our ongoing operations, we have the liquidity to grow our business, consider appropriate acquisitions, and fund anticipated share repurchases,” said the company’s CFO Robert C. Caller.

Details of the provisions to the amendment, which was completed on April 9, 2010, are as follows:  A new leverage-based pricing grid replaced the existing pricing grid governing both the existing us$ 183 million outstanding term loan and us$ 75 million undrawn revolver as follows: 

The undrawn fee on the existing revolver was amended as follows: Under 1.0 turn of leverage—25 basis points (bps); over 1.0 turn but less than or equal to 2.0 turns—37.5 bps; over 2.0 turns—50 bps.  This compares to 37.5 bps if under 1.0 turn and 50 bps if equal to or greater than 1.0 turn in the original agreement.

The company’s Maximum Total Leverage Ratio, as defined in the credit agreement, was amended to a maximum of 3.0 to 1.0 as of the end of any quarter.  In the original agreement, the leverage ratio stepped down to a maximum of 2.0 to 1.0 as of June 30, 2010.

Restricted payments (which includes share repurchases) limitations were amended as follows:  If the company’s total leverage ratio is under 1.0 turn, there are no restrictions on restricted payments; equal to or greater than 1.0 turn but less than 1.5 turns—limitation of us$ 75 million per year; equal to or greater than 1.5 turns—limitation of us$ 50 million per year. The lifetime cap on restricted payments of us$ 220 million was also removed.

The company’s senior unsecured basket was increased to us$ 300 million from us$ 150 million. The us$ 250 million acquisitions basket was removed. Certain of the company’s investment baskets were reset and increased. As of last March 31, the company was under 1.0 turn of leverage.

The company also entered into a new us$ 75 million revolving credit agreement with members of its existing bank group and three new banks.  The new revolver has the same terms, security, pricing, and conditions as the existing amended revolver except that it matures on March 31, 2014.  Future draws on the two revolvers will be pro rata.

The company paid approximately us$ 2.75 million in fees for the amendment and the new credit facility.  Approximately us$ 1.85 million of the fees will be amortized over the remaining term of the original credit facility maturing on September 12, 2012.  The re-pricing of the existing revolver and term loan will help to offset most of these costs.  The remaining approximately us$ 900 thousand will be amortized over the term of the new agreement maturing March 31, 2014.

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