Breakaway Capital, through its Breakaway Capital Partners Fund, LP, has provided a $10.5 million senior secured credit facility to Galaxy Gaming.
The new $10.5 million term loan – which matures in 2021 and has a six-month interest only period, then amortizes at 10% per year until maturity – refinances existing long-term debt which was used to acquire Prime Table Games in 2011. “We are excited to have Breakaway Capital as our financing partner. Breakaway’s ability to be creative, flexible and close quickly was a tremendous benefit to us,” said Gary Vecchiarelli, CFO of Galaxy Gaming.
Galaxy Gaming (OTC: GLXZ) designs, develops, manufactures, and distributes proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. Customers include land-based, riverboat, cruise ships and online casinos worldwide. Through its iGaming partner, Games Marketing Ltd., Galaxy Gaming licenses its table games to the online gaming industry. Examples of some of Galaxy’s games can be played online at www.FeelTheRush.com. The company has an installed base of products on over 4,000 gaming tables located in over 500 casinos, which – according to the company – positions Galaxy Gaming as the largest independent provider of proprietary table games in the world. Galaxy Gaming is based in Las Vegas (www.galaxygaming.com).
The Galaxy Gaming transaction represents Breakaway’s seventh investment through its first fund. “We are thrilled to provide debt financing to Galaxy Gaming. The company has an impressive recurring business model and has continued to show tremendous growth. This is Breakaway’s largest transaction to date and is representative of our strategy to provide complete one-stop financing solutions for lower middle market companies, financial sponsors and independent sponsors,” said Mike Connolly, a Partner of Breakaway Capital.
Breakaway Capital has $150 million of committed capital under management and provides senior debt, subordinated and mezzanine debt, unitranche structures, structured equity and common equity to companies with up to $10 million of EBITDA. The firm targets leveraged buyouts, acquisitions, recapitalizations, restructurings and growth capital for both sponsored and non-sponsored transactions. Breakaway Capital Partners was founded by Warren Woo and Mike Connolly and is based in Los Angeles (www.breakawaycap.com).
Galaxy Gaming was advised by specialist investment bank Union Gaming Securities (www.uniongaming.com) and Cascadia Capital (www.cascadiacapital.com).
© 2016 Private Equity Professional • 9-8-16
