Slot manufacturer and payment-technology supplier Everi Holdings, Inc. announced a plan to conduct a private offering of 5 million in senior unsecure notes due 2025, subject to market and other conditions.
The move is part of an effort to lower the cost of capital announced by Everi CEO Michael Rumbolz in the company’s third-quarter earnings announcement.
The exercise will be conducted by the firm’s wholly-owned subsidiary, Everi Payments Inc., and guaranteed by the parent company and certain of Everi Holdings’ direct and indirect domestic subsidiaries. The notes will be offered and sold only to qualified institutional buyers, said Everi Holdings.
The parent company additionally stated Everi Payments intends to use the net proceeds from the offering—together with cash on hand—to redeem in full its existing $350 million in 10 percent senior unsecured notes due 2022, “in accordance with their terms and pay related fees and expenses.”
Everi Holdings said last week that it had concluded the re-pricing of its $820 million senior secured term loan, adding that it expected to
