- Gaming machine developer Ainsworth Game Technology (AGI) has entered into a new five-year secured credit facility
- The new facility with U.S.-based banking company Western Alliance Bancorporation (WAB) is worth US$35 million, or approximately A$45 million
- Ainsworth Game Technology has used roughly 80 per cent of the facility to settle its pre-existing facility with ANZ
- It is currently unclear how the company intends to use the remainder of the facility
- Ainsworth Game Technology is up 11.54 per cent and trading at 87 cents per share
Gaming machine developer Ainsworth Game Technology (AGI) has entered into a new five-year secured credit facility.
The company’s new credit facility is with U.S.-based banking company Western Alliance Bancorporation (WAB). The facility is worth US$35 million, or approximately A$45 million.
Under the WAB facility, Ainsworth’s U.S.-based operating subsidiary, Ainsworth Game Technology Inc., has been established as the borrower and party to the relevant credit agreements. AGT and Ainsworth Game Technology will serve as the subsidiary’s guarantors within the facility.
Ainsworth has quickly leapt into action, eager to make use of its new credit facility with WAB. The company has already spent US$28 million (roughly A$36 million) in proceeds from the new facility, using up approximately 80 per cent of its total value in one fell swoop.
The proceeds from the new facility were used to extinguish all of Ainsworth’s obligations under a pre-existing revolving credit facility, which the company entered into with ANZ.
US$7 million (roughly A$9 million) of credit still is available, and the company has not yet commented on how it intends to use the remainder.
However, Ainsworth expects to provide more details about the new facility when it releases its unaudited financial results on February 25, 2021.
Ainsworth Game Technology is up 11.54 per cent, trading at 87 cents per share at 3:05 pm AEDT.