Galaxy Gaming's Debt Refinancing Enhances Financial Flexibility
Galaxy Gaming Successfully Completes Debt Refinancing
Galaxy Gaming, Inc. (OTC: GLXZ) has announced a major milestone with the successful completion of its debt refinancing. This strategic move has reduced the company’s total outstanding debt by $12.6 million, lowering interest rates while extending maturity dates. Such actions not only signify enhanced financial flexibility but also pave the way for potential growth initiatives.
Details of the New Credit Facilities
The refinancing involved securing two new financial products: a five-year secured term loan of $45 million due in 2030 and a $2 million secured revolving credit facility, which the company did not draw down at closing. The new term loan boasts a favorable initial interest rate pegged at SOFR plus 3.50%, a rate that can lead to significant savings.
Comments from Leadership
Steve Kopjo, the Chief Financial Officer of Galaxy Gaming, expressed that the refinancing of the outstanding debt significantly strengthens the company’s balance sheet. He pointed out that improved operational performance and record results were pivotal in achieving this refinancing transaction. Moving forward, Galaxy Gaming aims to focus on increasing its free cash flow while pursuing strategic growth initiatives.
Financial Impact of the Refinancing
As a result of this refinancing, Galaxy Gaming is projected to save approximately $2.8 million annually in interest payments compared to previous debt obligations. This substantial reduction in cash outlay provides the company with an opportunity to allocate resources towards operational enhancements and growth opportunities in the gaming market.
About Galaxy Gaming
Headquartered in Las Vegas, Nevada, Galaxy Gaming specializes in the development and distribution of innovative gaming products, including games and technology solutions for both physical and digital casinos. The company’s offerings are backed by exceptional customer support and are designed to meet the needs of the gaming industry. Notably, Galaxy Gaming Digital stands out as a leading provider of proprietary table games within the online gaming sector, maintaining over 130 licenses globally across multiple jurisdictions, including 28 U.S. states.
Future Outlook and Strategies
With the adjustment to its debt structure completed, Galaxy Gaming can now turn its attention toward various strategic initiatives aimed at bolstering its market position. The company is committed to maintaining its long-term net debt leverage target between 2.5 to 3.0 times its Adjusted EBITDA, reassuring stakeholders of its prudent financial management.
Frequently Asked Questions
What was the purpose of Galaxy Gaming's recent debt refinancing?
The debt refinancing aimed to reduce outstanding debt, lower interest rates, and enhance financial flexibility.
How much debt has Galaxy Gaming reduced?
Galaxy Gaming has reduced its total outstanding debt by $12.6 million through the refinancing process.
What are the financial benefits of the new credit facilities?
The new credit facilities are expected to save approximately $2.8 million annually in interest expenses for the company.
What products does Galaxy Gaming focus on?
Galaxy Gaming develops and distributes innovative games and technology solutions to both physical and online casinos worldwide.
How does Galaxy Gaming plan to use the savings from the refinancing?
Galaxy Gaming plans to redirect savings toward operational enhancements and strategic growth initiatives within the gaming industry.
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