Transaction Has Overwhelming Support of Secured Lenders Holding Over 86% of Lucky Bucks’ Secured Debt
Transaction to be Implemented Through Prepackaged Chapter 11
Lucky Bucks Expected to Operate Business as Usual During Process
Lucky Bucks, LLC and its parent, Lucky Bucks HoldCo, LLC (collectively, “Lucky Bucks”), among the largest Class B coin operated amusement machine (“COAM”) operators in Georgia, today announced a recapitalization transaction with the overwhelming support of its secured lenders holding over 86% of Lucky Bucks’ secured debt. The recapitalization transaction will position Lucky Bucks for long-term success by significantly de-levering Lucky Bucks’ balance sheet and enhancing its liquidity.
“The recapitalization transaction announced today will strengthen Lucky Bucks’ financial foundation, enabling us to maintain our industry leadership across the Georgia COAM market,” said James Boyden, Director and Executive Vice President of Corporate Development of Lucky Bucks. “We are confident in our ability to continue generating strong revenue for our partners as we take decisive steps to position our business for the future. During our recapitalization transaction, we expect there will be no disruption for our valued partners, employees, customers, vendors, or end-consumers.”
Secured lenders holding over 86% of Lucky Bucks’ secured debt have entered into a Restructuring Support Agreement (the “RSA”), evidencing their support for the recapitalization transaction, including their agreement to equitize substantially all of Lucky Bucks’ secured debt and provide up to $43 million of new capital in the form of new first lien debt. The recapitalization transaction, which remains subject to court and regulatory approval, will reduce Lucky Bucks’ total secured debt by over $500 million and enhance Lucky Bucks’ liquidity.
To effectuate the recapitalization transaction, Lucky Bucks has commenced voluntary prepackaged chapter 11 cases in the United States Bankruptcy Court for the District of Delaware (the “Court”).
Lucky Bucks expects to move swiftly through its chapter 11 cases to implement the recapitalization transaction in accordance with the RSA. Additionally, Lucky Bucks’ secured lenders have agreed to provide $82 million of debtor-in-possession financing (“DIP Financing”) to fund Lucky Bucks’ capital needs during the chapter 11 cases.
Additional Information
To facilitate a smooth transition into chapter 11, Lucky Bucks has filed customary “First Day Motions” with the Court, which are expected to be approved in short order. These motions include requests to pay all of Lucky Bucks’ general unsecured creditors in full, pay wages and benefits, and ensure the continuation of insurance, cash management systems, and other business operations without interruption.
Information regarding Lucky Bucks’ prepackaged chapter 11 cases is available on a separate restructuring information website administered by Lucky Bucks’ claims, noticing and solicitation agent, Epiq Corporate Restructuring, LLC, which is located at https://dm.epiq11.com/LuckyBucks. Stakeholders with questions about the process may call Epiq at 1-877-621-3093 or +1-503-406-3979 if calling outside the U.S. or Canada.
Milbank LLP and Richards, Layton & Finger are serving as legal counsel, Evercore is serving as investment banker, and M3 Partners is serving as financial advisor to Lucky Bucks. C Street Advisory Group, LLC is serving as strategy and communications advisor to Lucky Bucks.
Akin Gump Strauss Hauer & Feld LLP and Cole Schotz PC are serving as legal counsel, Greenhill & Co., LLC is serving as financial advisor, and OnMessage Public Strategy is serving as the communications advisor to the ad hoc group of lenders holding term loan secured debt of Lucky Bucks. Latham & Watkins LLP is serving as legal counsel to certain other lenders holding secured debt of Lucky Bucks.
About Lucky Bucks
Lucky Bucks, LLC is a digital skill-based COAM operator based in and incorporated under the laws of the State of Georgia in the U.S. Its team has a combined 45 years of experience in the Georgia COAM industry. For more information, visit Lucky Bucks’ website at https://luckybucksga.com/
View source version on businesswire.com: https://www.businesswire.com/news/home/20230609005176/en/
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LuckyBucks@thecstreet.com
