Business Context and Reporting Period
Company: Accel Entertainment, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 10, 2025
Event: Entry into a new Material Credit Agreement to refinance existing indebtedness.
Key Financial Metrics and Debt Structure
This filing details the establishment of new credit facilities rather than reporting operational financial results (revenue, profit, or cash flow) for a specific period.
- Total Credit Facilities: $900 million aggregate principal amount.
- Term Loan Facility: $600 million.
- Revolving Loan Facility: $300 million (includes $15 million sublimit for standby letters of credit and $25 million sublimit for swingline loans).
- Maturity Date: September 10, 2030.
- Interest Rate Structure: Variable rates based on Base Rate or Term SOFR plus an applicable margin ranging from 0.75% to 2.5%, determined by the First Lien Net Leverage Ratio.
- Collateral: Secured by first-priority liens on substantially all assets of the Company and its material domestic subsidiaries.
Material Changes Versus Prior Period
The primary material change is the refinancing of the Company's debt structure:
- Refinancing Action: Proceeds from the initial borrowings under the new Credit Agreement were used to repay in full all outstanding indebtedness and terminate all commitments under the previous Credit Agreement dated November 13, 2019 (as amended).
- Lender Changes: The new agreement involves CIBC Bank USA as administrative agent, replacing Capital One, National Association from the prior agreement.
Guidance, Covenants, and Risks
Financial Covenants: The Borrower must maintain the following ratios as of the last day of each fiscal quarter:
- First Lien Net Leverage Ratio: No greater than 4.75 to 1.00.
- Fixed Charge Coverage Ratio: At least 1.20 to 1.00.
Restrictive Covenants: The agreement includes limitations on granting additional liens, incurring additional indebtedness, mergers, asset dispositions, affiliate transactions, and restricted payments.
Risks: The agreement contains customary events of default. If triggered, the administrative agent may declare all amounts owing immediately due and payable and exercise remedies against the collateral.
Investor Verification Checklist
- Verify the full text of the Credit Agreement (Exhibit 10.1) for specific definitions of "First Lien Net Leverage Ratio" and "Fixed Charge Coverage Ratio."
- Confirm the exact amount of debt retired from the 2019 Credit Agreement to assess the net change in leverage.
- Review the press release (Exhibit 99.1) for management's commentary on the strategic rationale for the refinancing.
- Monitor future quarterly filings to ensure compliance with the 4.75x leverage and 1.20x coverage covenants.