Shares of slot-machine and financial services provider Everi Holdings rose after the announcement that the company will refinance two major loans.
The debt refinancing could yield interest savings on its respective $462 million and $335 million credit notes and extend their maturity schedules until 2020 and 2021, increasing the company’s cash flow and improving its leverage position.
The company also announced preliminary first-quarter earnings of $233 million to $238 million in net revenues, a quarterly net loss of $6 million to $4 million and adjusted EBITDA of $52 million to $54 million.
Markets reacted positively to the announcement of the restructuring, with Everi shares closing on April 10 at $5.85 after opening at $5.06.
“Our preliminary 2017 first quarter results include year-over-year revenue and Adjusted EBITDA growth for both our games and payments segments, which reflect the company’s continued successful execution against its strategic priorities,” said Michael Rumbolz, president and chief executive officer of Everi.
“With the strongest and most diverse games and payments products and technology solutions in our history and our company-wide focus on disciplined expense management, we are well positioned to deliver consistent operating performance momentum over the balance of 2017 and beyond.”
“The refinancing, assuming it is successful, should enhance the free cash flow prospects for the company and add stability to the balance sheet in a leverage-focused story,” David Katz, an analyst at the Telsey Group, wrote in a note.
