Everi will receive close to $118m in net proceeds after all the fees, discounts and expenses. Together with a $35m drawdown on its revolving credit facility, the loan has boosted the company’s finances.
CEO Michael Rumbolz said: "With our revenue and the associated workload essentially having been reduced to near zero, and our limited clarity as to the various timelines when our customers may restart their operations, we have taken prudent actions to position our company to withstand this period of minimal or reduced gaming industry activity."
The company has a long-term debt of $1.06bn, comprised of $735.5m of Everi’s existing loans, $285.4m in 7.50% senior unsecured notes, and the added new loans and drawdowns.
Everi plans to repay the debt in increments in 2022, 2024 and 2025.
After the stagnation of work and loans, shares of Everi went down by 7%. However, Rumbolz remained hopeful.
He said: "Our continued hope is that the steps undertaken to contain the COVID‐19 virus will prevail, and that our economy and way of life can get back to normal as quickly as possible."
