GAN amends credit facility, including transfer of lender

Chicago, April 19 – GAN Ltd. worked with its lender to modify an existing credit agreement, then the loan was transferred to a new lender and the loan was modified again, according to an 8-K filing with the Securities and Exchange Commission.

BPC Lending I LLC, an affiliate of Beach Point Capital Management LP, and Alter Domus (US) LLC as agent amended the $30 million term loan on April 13.

The April 13 amendment waived a default under some of the covenants.

The amendment also revised the consolidated total net leverage ratio to not more than 3x, tested only upon the incurrence of debt or the issuance of equity that pays a cash dividend before the full payment of the credit agreement. Additionally, the consolidated interest coverage ratio with a liquidity covenant is now $10 million, tested quarterly starting June 30.

Beach Point transferred the obligations to Sega Sammy on April 13, after the loan was modified.

Then, GAN worked out a second amendment with Sega Sammy to increase borrowings by an additional $12 million in term loans.

Proceeds were used to pay fees to Beach Point.

The second amendment became effective on April 14.

The interest rate on the Sega Sammy amendment is 8%, payable in kind.

The maturity date is now three years from the effective date.

There is a prepayment fee of 14% during the first five months, including for a change-of-control transaction.

GAN is based in Irvine, Calif. The company is a provider of enterprise software-as-a-service for online casino gaming.

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