- Minimized Total Outstanding Debt by $12.6 Million
- Decreased Interest Rates and Extended Maturities
- Realized Approximately $2.8 Million in Yearly Interest Savings
LAS VEGAS, Jan. 08, 2025 (GLOBE NEWSWIRE) — Galaxy Gaming, Inc. (OTC: GLXZ) announced today it has successfully finalized the refinancing of its outstanding debt, which includes (i) closing a five-year $45 million secured term loan maturing in 2030 (the “New Term Loan”); and (ii) a $2 million secured revolving credit facility maturing in 2030 that was undrawn at closing (the “New Revolver” alongside the New Term Loan, referred to collectively as the “New Credit Facilities”). The New Credit Facilities are set at an initial interest rate of SOFR plus 3.50%.
“The refinancing of our outstanding debt considerably bolsters our balance sheet and enhances Galaxy Gaming’s financial agility. Our enhanced operational performance and recent record results were crucial in achieving the success of this refinancing deal,” stated Steve Kopjo, Chief Financial Officer of Galaxy Gaming. “By replacing our term loan and strategically reducing our overall debt, we have secured significant annual interest savings while extending the maturity to 2030. Our annualized cash borrowing expenses at current rates stand at approximately $2.8 million lower than those recorded on September 30, 2024. Looking ahead, we will continue to focus on generating Free Cash Flow and invest in initiatives that promote our growth while maintaining a prudent long-term net debt leverage target of around 2.5 – 3.0 times our Adjusted EBITDA.”
The New Credit Facilities are secured by nearly all of the Company’s assets and are guaranteed by the Company’s wholly owned subsidiaries.
The Company used the proceeds from the New Term Loan, together with available cash, to completely prepay and terminate all obligations under its previous Term Loan Facility maturing in 2026, in addition to settling all associated fees and expenses related to this transaction.
About Galaxy Gaming
Based in Las Vegas, Nevada, Galaxy Gaming (galaxygaming.com) creates and distributes inventive games, bonusing systems, and technological solutions to physical and online casinos globally. Galaxy Gaming provides games demonstrated to perform well, developed by gaming professionals and supported by top-tier customer service. Galaxy Gaming Digital is the industry’s leading licensor of proprietary table games for the online gaming sector. Galaxy Gaming holds 130 licenses worldwide, incorporating licenses in 28 U.S. states.
Some of the information in this press release consists of forward-looking statements. In some instances, you may recognize forward-looking statements by terms such as “may,” “will,” “should,” “could,” “might,” “expect,” “intend,” “target,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these words or similar expressions. These forward-looking statements are solely forecasts. We have based these forward-looking statements on our current expectations, assumptions, and projections regarding future events and financial trends that we believe could influence our business, financial condition, and operational results. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control, that may result in actual results and future events differing materially from those portrayed in any forward-looking statement.
These risks and uncertainties include, but are not limited to, the capacity to finalize the Company’s acquisition by Evolution Malta Holding Limited (“Evolution”), a wholly owned subsidiary of Evolution AB (publ) (the “Merger”) based on the proposed terms or on the expected timeline, or not at all, which includes the risks and uncertainties linked with gaming regulatory approvals and the fulfillment of other closing conditions to complete the proposed Merger; the occurrence of any event, change, or other circumstance that could lead to the termination of the Merger Agreement (as defined herein) related to the proposed Merger; the risks that the proposed Merger disrupts the Company’s current plans and operations or diverts the attention of the Company’s management or employees from ongoing business activities; the risk of potential challenges with the Company’s ability to retain and recruit key staff and sustain relationships with customers and other third parties as a result of the proposed Merger, including throughout the merger process; the risk that the proposed Merger could involve unexpected expenditures and/or unknown or unquantifiable liabilities; the risk that the Company’s business could suffer due to uncertainty surrounding the proposed Merger; the risk that shareholder litigation in connection with the proposed Merger may influence the timing or occurrence of the proposed Merger or lead to significant costs of defense, indemnification, and liability; effects associated with the announcement of the transaction or any further announcements or the completion of the transaction on the market price of the Company’s common stock; the capability of Galaxy Gaming to establish and maintain strategic partnerships, product placements or installations in traditional casinos, or expand its iGaming business, gain new market share, secure licenses in new jurisdictions or uphold existing licenses, successfully develop or acquire proprietary products, comply with regulations, including changes in gaming and non-gaming statutes and regulations that impact our customers’ revenues in land-based and online casino markets, receive approvals for its games in relevant jurisdictions, unfavorable economic situations in the U.S. and worldwide, our level of debt, constraints and covenants in our loan agreement, reliance on major customers, protection of intellectual property, and our ability to license the intellectual property rights of third parties, inability to maintain the integrity of our information technology systems, including but not limited to, 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 data theft, corruption, and substantial disruption of our business, among other factors. More details regarding these and other risk factors can be found in the Company’s filings with the Securities and Exchange Commission, including in the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and Definitive Proxy Statement.
All forward-looking statements made herein are explicitly qualified in their entirety by these cautionary statements. While forward-looking statements portray the Company’s good faith beliefs, they are not warranties of future performance or events and there can be no certainty that the actual results, events, or developments referred to herein will occur or be realized. Any forward-looking statement is valid only as of the date it was made. Galaxy disclaims any obligation to publicly update or revise any forward-looking statement to mirror changes in foundational assumptions or factors, or new information, data or methods, future events or other changes.
Contact:
Media:
Phylicia Middleton (702) 938-1753
Investors:
Steve Kopjo (702) 727-8886