- Company to redeem all listed convertible debentures, retire all secured debt, and fund additional investments -
VANCOUVER, Aug. 2, 2016 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX‐V: PYD) ("Poydras" or the "Company"), a leading provider of gaming machines to casino operators in its core markets of Oklahoma and Texas, today announced that it 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 million USD, at an initial rate of LIBOR plus 1,150 bps 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.
About MGG Investment Group LP
MGG Investment Group LP ("MGG"), based in New York City, NY, is a private direct lender focused on the middle-market, providing financing solutions to mid-size and growing companies. Over the past 18 years, the MGG team has built a strong record of trust with key industry players and companies. MGG works with owners and management teams to help build lasting value, address immediate needs, and solve complex situations.
About Poydras Gaming Finance Corp.
Poydras Gaming is a regional slot route operator with approximately 2,500 revenue-generating gaming machines across 25 casinos in Oklahoma and Texas. The Company provides slot machines and related capital expenditures under short- and long-term contracts for existing casinos, new casino developments and gaming machine suppliers in the United States. Additional information about the Company can be found on the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this news release is considered forward-looking within the meaning of certain securities laws and is subject to important risks, uncertainties and assumptions. This forward‐looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward‐looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD‐LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE Poydras Gaming Finance Corp.
For further information: Keith Richards, Investor Relations, NATIONAL Equicom, T: (416) 848-1599, E: firstname.lastname@example.org; James Kim, VP of Corporate Development, Poydras Gaming Finance Corp., T: (604) 683-8393, E: email@example.com