Accel Entertainment Secures $900 Million Credit Facility to Fuel Growth Strategy
Accel Entertainment has closed a $900 million senior secured credit facility that will enhance liquidity, reduce capital costs, and support strategic investments in its gaming operations and expansion opportunities.
Accel Entertainment (NYSE: ACEL), a major provider of locals-focused gaming and one of the largest terminal operators in the United States, has entered into a $900 million senior secured credit facility. The financing consists of a $300 million revolving credit facility and a $600 million term loan, both with five-year terms. Initial borrowings were used to fully repay and terminate all outstanding commitments under the company's previous senior secured credit agreement.
The significance of this financing extends beyond immediate debt restructuring. According to CEO Andy Rubenstein, the new facility enhances Accel's liquidity profile while reducing its cost of capital for the coming years. This positions the company to continue investing in its distributed gaming operations, Fairmount Park Casino & Racing, and targeted growth opportunities while maintaining a strong balance sheet focused on shareholder value enhancement.
The credit facility involves a syndicated group of major financial institutions, reflecting strong institutional confidence in Accel's business model and growth prospects. CIBC Bank USA acted as the Administrative Agent and Lead Arranger, while Fifth Third Bank, National Association, JPMorgan Chase Bank, N.A., U.S. Bank National Association, and Truist Securities, Inc. served as Joint Lead Arrangers. Bank of America, N.A. served as Documentation Agent for the transaction.
This substantial financing facility comes at a critical time for the gaming industry, particularly for companies like Accel that operate across multiple states through third-party establishments. With operations supporting more than 27,000 electronic gaming terminals in over 4,400 locations across ten states, the company requires significant capital to maintain and expand its infrastructure. The financing provides Accel with the flexibility to pursue strategic initiatives while optimizing its capital structure in a competitive market environment.