Huge news! Mr. Peter Macy reports
POYDRAS GAMING FINANCE CORP. ANNOUNCES $30.5 MILLION USD DEBT REFINANCING
Poydras Gaming Finance Corp. has secured a financing arrangement with MGG Investment Group LP and its related parties, consisting of a five-year term loan facility in the aggregate principal amount of $30,525,000 (U.S.), at an initial rate of London interbank offered rate (LIBOR) plus 1,150 basis points which steps down as the company deleverages.
This financing will be used for:
the early redemption without penalty of all the Company's $7.732 million USD listed convertible debentures;
payment in full of the Company's $8.5 to $9.0 million USD of vendor loans;
payment in full of the Company's approximately $4.0 million USD remaining arrangements with PDS Gaming;
funding in full of the Company's up to $3.0 million USD in remaining commitments related to its recently announced 230 machine placement in a new Native-American owned casino in Oklahoma, which is expected to add US$2.0 million dollars in annual run-rate revenue once fully deployed by the end of September (see Company press release dated May 24, 2016);
acquisition of additional machine placements and associated gaming machines; and
general working capital and the payment of fees and expenses related to the financing.
"This new, non-dilutive long-term loan facility delivers a number of important benefits to Poydras and to its shareholders, and positions us strongly for our next stage of growth" said Peter Macy, CEO of Poydras. "Retiring our debentures early eliminates the risk of potential dilution from their conversion, but most importantly, this new consolidated facility will fund our next phase of growth both through the new capital it provides and the increased operating cash flow that will be available for reinvestment in the business as a result of its extended maturity. Our development pipeline is strong, and I look forward to sharing further news in the course of the second half of the year."
Appointment of Corporate Secretary
The Company also announces, pursuant to applicable securities regulations, that James Kim, VP of Corporate Development, has been appointed Corporate Secretary. The appointment was effective July 18, 2016. James is a veteran finance professional with over a decade of mergers and acquisitions, debt and equity financing, and corporate development expertise. James holds a Bachelor of Science degree from NYU's Stern School of Business and an MBA from Columbia University.
We seek Safe Harbor.