US-based digital casino products and player loyalty solutions provider Everi Holdings Inc says it intends to offer US$400 million in aggregate principal amount of senior unsecured notes due 2029 in a private offering aimed at reducing the companys debt.
The proceeds from the notes issue will be used to redeem in full its 7.50% Senior Unsecured Notes due 2025 and to pay related fees and expenses, the company said overnight. Everi will also enter into new credit facilities from which, together with cash on hand, it will repay in full all remaining outstanding borrowings under its existing credit facilities.
The issue of new notes and entering into of new credit facilities forms part of Everis recently announced refinancing plans, with the company looking to take advantage of favorable market conditions to lower its cost of debt and extend maturities.
Under the plan, Everi said it will refinance its US$35 million Revolving Credit Facility due 2022 and its US$820 million Term Loan Facility due 2024, prepay in full its US$125 million Incremental Term Loan Facility due 2024 and redeem the US$285.4 million of Unsecured Notes due 2025.
The result will be a reduction in outstanding debt from US$1.15 billion to US$1 billion with a new US$125 million Revolving Credit Facility that would be undrawn at closing.