Galaxy Gaming receives $4 million Main Street Loan

3 November 2020

(PRESS RELEASE) -- Galaxy Gaming, Inc., a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming, announced today that it had received a loan of $4.0 million. The loan was originated by Zions Bancorporation, N.A., dba Nevada State Bank, and funded by NSB and the Main Street Priority Loan Program that was enacted as part of the CARES Act in March 2020.

The Main Street loan is a senior secured obligation and ranks pari passu with the Term and Revolving Loans that the Company has borrowed under its Credit Agreement with NSB, as amended. The Main Street loan shares in the pledge of collateral that the Company has given in connection with the NSB loans. The Main Street loan bears interest at a rate of three-month US dollar LIBOR plus 300 basis points (initially 3.215%), and interest payments during the first year will deferred and added to the loan balance. The Main Street loan has a five-year final maturity, with 15% of principal amortizing in each of years three and four. The Main Street loan, plus accrued and unpaid interest, may be prepaid at any time at par. While the Main Street loan is outstanding, and for one year after it is repaid in full, the Company may not 1) repurchase stock, pay dividends or make other distributions, or 2) pay compensation to executive officers that exceeds the total compensation they received in 2019.

In connection with the Main Street Loan, the Company and NSB entered into a Sixth Amendment to Credit Agreement dated October 26, 2020 (the “Sixth Amendment”). The Sixth Amendment allowed the Company to enter into the Main Street loan. In addition, the Sixth Amendment put in place a Liquidity Covenant that requires the Company to maintain a minimum cash balance of $1.5 million through and including the quarter ended June 30, 2021 and $2.5 million thereafter.

“Our iGaming business remains robust, but the land-based casino industry in the second and third quarters of this year varied widely by geography,” stated Todd Cravens, Galaxy’s President and CEO. “New restrictions have just been announced in the UK as well as other domestic markets. These Main Street funds increase our ability to ride out any short-term downturns that might result from regional efforts to fight the pandemic.”

“Pro forma for the Main Street loan, our cash at September 30, 2020, would have been approximately $6.6 million,” said Harry Hagerty, Galaxy’s CFO. “The Main Street loan has given us a flexible and relatively inexpensive source of funding with which to address the uncertainties ahead. And once again, we are incredibly appreciative of the hard work and support of our partners at NSB.”

Related Links
Galaxy Gaming Gaming Vendor Information

Featured Vendors
Broadband Hospitality
Casino Network
Broadband Hospitality
Improve these critical guest-facing amenities: In-room TV, Wi-Fi, Mobile App. Priced right. All here
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Sunkist Graphics, Inc.
TOP ONE TECH LIMITED
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
TOP ONE TECH LIMITED
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
TDN Money Systems
Global Gaming Expo (G2E)
TDN Money Systems
Cage, cash/chip handling experts representing CountR, ARCA, AccuCASH, Fujitsu & NCR
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Imagine This
Oklahoma Indian Gaming Association (OIGA) Conference
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: Aug 9-11, 2022 in Tulsa!
Rymax Marketing Services, Inc.
.Dot-iGaming.com
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
.Dot-iGaming.com
Fully loaded advanced casino platform. One time (low) fee, 100% your property, start now!
Talisman Group Creators of EZ Baccarat
Plastic Card ID
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Plastic Card ID
The World’s Lowest Prices on Printed Plastic Cards and Card Printers!
TribalHub
AmericanChecked
TribalHub
23rd Annual TribalNet Conference Sept 12-15, 2022 Grand Sierra Resort & Casino in Reno, NV
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Casino City Press
Kallop
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
Casino Schedule Ease
Betson Imperial Parts & Service
Casino Schedule Ease
Get a 90-Day Free Trial of 100% contactless, customizable table game & full casino scheduling
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!


Your Guide to 15,524 Gaming Industry Suppliers