Gaming equipment provider AGS said Friday it closed on a $95 million loan and amendments to the Las Vegas-based company’s credit agreements that will help it weather the continued nationwide casino shutdown caused by the coronavirus outbreak.
In a statement, AGS said the loan would be used for “general corporate purposes.”
The company implemented short-term furloughs, salary reductions, and reduced its workforce by 10% on April 6 to deal with the loss of revenues with casinos closed due to the CVID-19 pandemic.
AGS ended 2019 with $519 million in long term debt but without any near-term maturities. The company had $13 million on hand and drew down $30 million under a credit line last month, improving its total liquidity to $43 million.
According to an SEC filing last month, AGS said it borrowed the funds as “a precautionary measure” to increase the company’s cash position and “facilitate financial flexibility in light of the current uncertainty in the global markets.”
AGS CEO David Lopez said in a statement the company’s focus has been dealing with the unprecedented impact the pandemic has had on the gaming industry.
“Our focus has been to prioritize the well-being of our employees and the prudent management of the company’s financial resources for the long-term,” Lopez said.
He added the loan provided AGS with “additional liquidity and financial flexibility to navigate these uncertain and extraordinary times.”
Several states, including Nevada, Illinois, and tribal casinos in Oklahoma, extended casino closures into May. Mississippi’s governor, however, said casinos in the state could be open by Memorial Day.
Lopez said the loan will “help get our business back to being fully operational so that we can be the best partners possible to our customers as our industry begins to recover.”
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
