Effective debt management is a major aspect of a company’s success, and hence, it is likely that the Galaxy Gaming Inc. (OTC: GLXZ) stock is going to get some attention from investors today. On Wednesday the company had come into focus after it provided details with regards to the successful completion of a debt refinancing transaction.
Debt Refinancing
The company announced yesterday that it concluded the refinancing of its outstanding debts, which included some interesting details. The refinancing included a $45 million five-year secured term loan that would be due in 2030 and a secured revolving credit facility worth $2 million, which would also be due in 2030. The latter had been withdrawn in closing. In the news release, the company also noted that the two new credit facilities would also carry initial interest rates to the tune of SOFR plus 3.5%.
Further Information
It was noted that the refinancing would help the company in significantly strengthening its balance sheet and also provide Galaxy Gaming with considerable financial wiggle room. The improvement in the operating performance and record financial performance had been two of the pivotal factors behind the success in putting together the refinancing. You may consider keeping an eye on the stock today.
Key Quote
“The refinancing of our outstanding debt significantly strengthens our balance sheet and enhances Galaxy Gaming’s financial flexibility. Our improved operating performance and recent record results were pivotal in driving the success of this refinancing transaction,” said Steve Kopjo, Chief Financial Officer of Galaxy Gaming.
