Galaxy Gaming® Announces Successful Completion of Debt Refinancing
Summary
Our improved operating performance and recent record results were pivotal in driving the success of this refinancing transaction," said Steve Kopjo, Chief Financial Officer of Galaxy Gaming. "Through the replacement of our term loan and the strategic downsizing of our overall debt, we have achieved substantial annual interest savings while extending the maturity to 2030. Moving forward, we will continue to prioritize Free Cash Flow generation and invest in initiatives to support our growth, while maintaining a prudent long-term net debt leverage target of approximately 2.5 - 3.0 times our Adjusted EBITDA. "The New Credit Facilities are secured by substantially all of the Companys assets and are guaranteed by the Companys wholly owned subsidiaries.The Company utilized the proceeds from the New Term Loan, along with cash on hand, to fully prepay and terminate all commitments under its previous Term Loan Facility due 2026, as well as to settle all related fees and expenses associated with this transactionHeadquartered in Las Vegas, Nevada, Galaxy Gaming (galaxygaming.com) develops and distributes innovative games, bonusing systems, and technology solutions to physical and online casinos worldwide. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company, that may cause actual results and future events to differ significantly from those expressed in any forward-looking statement.These risks and uncertainties include, but are not limited to, the ability to complete the Companys acquisition by Evolution Malta Holding Limited (Evolution), Evolution AB (publ)s wholly owned subsidiary (the Merger) on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to gaming regulatory approvals and satisfaction of other closing conditions to consummate the proposed Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement (as defined herein) relating to the proposed Merger; risks that the proposed Merger disrupts the Companys current plans and operations or diverts the attention of the Companys management or employees from ongoing business operations; the risk of potential difficulties with the Companys ability to retain and hire key personnel and maintain relationships with customers and other third parties as a result of the proposed Merger, including during the pendency of the Merger; the risk that the proposed Merger may involve unexpected costs and/or unknown or inestimable liabilities; the risk that the Companys business may suffer as a result of uncertainty surrounding the proposed Merger; the risk that stockholder litigation in connection with the proposed Merger may affect the timing or occurrence of the proposed Merger or result in significant costs of defense, indemnification and liability; effects relating to the announcement of the transaction or any further announcements or the consummation of the transaction on the market price of the Companys common stock; the ability of Galaxy Gaming to enter and maintain strategic alliances, product placements or installations in land based casinos or grow its iGaming business, garner new market share, secure licenses in new jurisdictions or maintain existing licenses, successfully develop or acquire and sell proprietary products, comply with regulations, including changes in gaming related and non-gaming related statutes and regulations that affect the revenues of our customers in land-based casino and, online casino markets, have its games approved by relevant jurisdictions, unfavorable economic conditions in the US and worldwide, our level of indebtedness, restrictions and covenants in our loan agreement, dependence on major customers, protection of intellectual property and our ability to license the intellectual property rights of third parties, failure to maintain the integrity of our information technology systems, including without limitation, cyber-attacks or other failures in our telecommunications or information technology systems, or those of our collaborators, third-party logistics providers, distributors or other contractors or consultants, could result in information theft, data corruption and significant disruption of our business, and other factors.