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Allied Esports Entertainment Announces the Successful Completion of Debt Refinancing Activities
IRVINE, Calif.--(BUSINESS WIRE)-- Allied Esports Entertainment (NASDAQ: AESE) (the “Company”), a global esports entertainment company, today announced the
About this update from Allied Gaming & Entertainment Inc.
[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nAllied Esports Entertainment (NASDAQ: AESE) (the “Company”), a global esports entertainment company, today announced the successful refinance of the Company’s outstanding short-term debt.\n\n\nAs of March 31, 2020, the Company held $14 million of convertible debt obligations on its balance sheet, which were scheduled to mature on August 23, 2020. As a result of the following transactions, the Company now holds a principal debt balance of $13 million with maturities ranging 20-24 months from today.\n\n\n\nOn May 22, 2020, Knighted Pastures LLC, the holder of a bridge note with original principal of $5 million, and who previously converted $2 million of that principal into an equity stake in the Company on April 29, 2020, agreed to convert the remaining $3 million of their bridge note into the Company’s common stock. As part of this refinancing, Knighted Pastures has also agreed to an 18-month extension on $1.4 million of accrued interest originally due in August 2020.\n\n\n\n\nTwo additional bridge loan holders, collectively holding $2 million of the Company’s debt, also agreed to an 18-month extension on the maturity of their respective holdings.\n\n\n\n\nA consortium of institutional investors agreed to refinance, net of fees and interest, the remaining $7 million in bridge financing principal and the associated accrued interest held by the Company into senior secured notes maturing in 24 months.\n\n\n\nCommenting on the recent financing activities, Chief Executive Officer, Frank Ng, said, “With the completion of these transactions, Allied Esports Entertainment has significantly improved its liquidity position and has now addressed the entire $14 million principal of outstanding debt and $3.7 million of accrued interest scheduled to mature on August 23, 2020. This refinancing will provide the company with additional financial flexibility over the next 18-24 months as we continue to look for ways to optimize our capital in a manner that allows us to better navigate economic uncertainties during the COVID-19 pandemic, while creating value and growth for the future.”\n\n\nRoth Capital Partners and Lake Street Capital Markets acted as advisors to the company on the transaction.\n\n\nAbout Allied Esports Entertainment\n\n\nAllied Esports Entertainment (NASDAQ: AESE) is a global esports entertainme...