Note 6. Debt
As of January 1, 2018, the Company was party to a Second Amended and Restated Loan and Security Agreement (Second Amendment) with most of the
same syndicated group of banks in its prior loan agreements which provided for a total loan facility of $210,000,000 and includes term loan availability, contract draw availability, and line of credit availability. On April 10, 2018, the
Company entered into a Third Amended and Restated Loan and Security Agreement (Third Amendment) with most of the same syndicated group of banks, and increased the loan facility from $210,000,000 to $300,000,000. The Third Amendment
extended the agreement maturity date from November 2021 to April 2023. On August 22, 2019, the Company entered into the First Amendment to the Third Amended and Restated Loan and Security Agreement (Fourth Amendment) with most of
the same syndicated group of banks, and increased the loan facility from $300,000,000 to $380,000,000. This amendment also included changes to borrowing base restrictions, as well as covenant definitions and calculations.
Under the Third Amendment, interest on all credit facilities is payable monthly on unpaid balances at the variable per annum LIBOR rate (2.03% at
September 30, 2019) plus an applicable margin, as defined, ranging from 1.70% to 2.50% depending on the ratio of the Companys Secured Debt to EBITDA, as defined. As of September 30, 2019, the average interest rate was approximately
4.56%. An unused line fee of 0.25% is payable monthly on the difference between the total availability and the average daily balance of the line of credit and the contract draw loan outstanding. There were no changes to interest payments in the
Fourth Amendment.
The Third Amendment increased the term loan availability from $90,000,000 to $125,000,000 and requires quarterly principal payments of
$3,125,000 through March 31, 2020, $3,906,250 through March 31, 2022, $4,687,500 through March 31, 2023, and the remaining balance due upon maturity in April 2023. The term loan balance at September 30, 2019 and December 31,
2018 was $106,250,000 and $115,625,000, respectively. There were no changes to the term loan in the Fourth Amendment.
The Third Amendment increased the
contract draw availability from $65,000,000 to $90,000,000 and changed from a borrowing draw loan to a revolving facility whereby the Company can borrow and repay throughout the term of the agreement with no required loan repayments until maturity
in April 2023. The Fourth Amendment increased the contract draw availability from $90,000,000 to $170,000,000. As of September 30, 2019 and December 31, 2018, the contract draw loan balance was $170,000,000 and $67,000,000, respectively.
As of September 30, 2019 and December 31, 2018, availability on the contract draw loan was $0 and $23,000,000, respectively.
The Third
Amendment increased the maximum line of credit borrowings from $55,000,000 to $85,000,000 subject to a borrowing base which is defined as the sum of 90% of the Companys vault cash outstanding, as defined; less payables owed to establishment
owners, the State of Illinois and the Illinois Gaming Board. Payments can be made on demand at the Companys election, and are only required if the balance exceeds the lesser of the total line of credit commitment of $85,000,000 or the
revolving loan availability. As of September 30, 2019 and December 31, 2018, the line of credit balance was $56,000,000 and $50,000,000, respectively. There were no changes to the line of credit in the Fourth Amendment
Additionally, the Company has the ability to utilize letters of credit. The Company had no outstanding letters of credit as of September 30, 2019 and
December 31, 2018.
The credit facilities are collateralized by substantially all assets of the Company and includes defined financial covenants
related to leverage, fixed charge and minimum EBITDA.
Unamortized debt issuance costs related to the facilities were $1,393,495 and $1,229,714 as of
September 30, 2019 and December 31, 2018, respectively.
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