Accel Entertainment Secures $900 Million Credit Facility to Strengthen Financial Position

Accel Entertainment (NYSE: ACEL), a growing 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 credit facility consists of a $300 million revolving credit facility and a $600 million term loan, each with a five-year term. Initial borrowings were used to repay in full and terminate all outstanding commitments under Accel's existing senior secured credit agreement.

This financing significantly enhances the company's liquidity profile while reducing its cost of capital for the coming years. The new facility positions Accel to continue investing in its distributed gaming operations, Fairmount Park Casino & Racing, and targeted growth opportunities while maintaining a strong balance sheet. The transaction demonstrates the confidence of major financial institutions in Accel's business model and growth prospects.

The credit facility is comprised of a syndicated group of banks, with CIBC Bank USA acting as the Administrative Agent and Lead Arranger. Fifth Third Bank, National Association, JPMorgan Chase Bank, N.A., U.S. Bank National Association, and Truist Securities, Inc. served as Joint Lead Arrangers, while Bank of America, N.A. served as Documentation Agent. This broad banking syndicate reflects the strength of Accel's financial position and the attractiveness of the gaming terminal operator sector to institutional lenders.

For the gaming industry, this substantial credit facility underscores the continued growth and stability of the distributed gaming market. Accel's ability to secure such financing at favorable terms indicates strong investor confidence in the company's operational strategy and market position. The funding will support Accel's expansion across its ten-state operation, which includes more than 27,000 electronic gaming terminals in over 4,400 third-party locations and 20 self-operated gaming facilities.

The financial restructuring comes at a time when the gaming industry continues to experience robust growth, particularly in the locals-focused segment that Accel specializes in serving. By reducing its cost of capital and enhancing liquidity, Accel is better positioned to capitalize on market opportunities and navigate potential economic uncertainties. The five-year term provides stability and predictability for the company's financial planning and strategic initiatives.