Item 1.01 Entry into Material Definitive Agreement

On April 13, 2023 GAN Limited ("GAN") and certain of its affiliates and other third parties entered into three agreements with respect to the Credit Agreement dated April 26, 2022 (the "Credit Agreement"), with BPC Lending I LLC, an affiliate of Beach Point Capital Management LP ("Beach Point"), as lender, and Alter Domus (US) LLC, as agent with respect to a $30 million term loan, as described below.

On April 13, 2023 GAN, through its wholly-owned subsidiary GAN Nevada, Inc. ("GAN NV"), entered into a First Amendment to Credit Agreement with Beach Point (the "First Amendment"), pursuant to which Beach Point agreed to waive certain defaults under the Credit Agreement and to amend the financial covenants to (a) revise the Consolidated Total Net Leverage Ratio to no greater than 3:1, tested only upon the incurrence of indebtedness or the issuance of equity interests that pay a cash dividend prior to the payment in full of the obligations under the Credit Agreement, and (b) replace a Consolidated Interest Coverage Ratio with a Liquidity covenant of $10 million, tested quarterly beginning June 30, 2023.

On April 13, 2023, Beach Point and Sega Sammy Holdings Inc. ("Sega Sammy") entered into an Assignment and Acceptance, pursuant to which Beach Point assigned all of its rights and obligations under the Credit Agreement, as amended by the First Amendment, to Sega Sammy.

On April 13, 2023, immediately following execution of the Assignment and Acceptance referred to above, GAN NV entered into a Second Amendment to Credit Agreement with Sega Sammy, to, among other things, borrow an additional $12 million of term loans, the proceeds of which were used to pay certain fees to Beach Point, to pay fees and expenses associated with the First Amendment and the Second Amendment, and for general corporate purposes. The Second Amendment became effective on April 14, 2023. The terms of the Second Amendment (a) amended the interest rate on all outstanding term loans to eight percent (8%) per annum, payable in kind, (b) amended the maturity date for all term loans to be the third anniversary of the effective date of the Second Amendment, (c) implemented a prepayment fee of 14% during the first five (5) months after the effective date of the Second Amendment, which fee is payable if a change of control transaction is signed within such five (5) month period.

The foregoing description does not purport to be a complete description of the First Amendment and the Second Amendment and is subject to, and qualified in its entirety by, the full text of the First Amendment and Second Amendment, which are filed as Exhibits 10.1 and 10.2 hereto and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits





(d) Exhibits



Exhibit No.   Description
10.1            First Amendment to Credit Agreement dated as of April 13, 2023,
              between the registrant and BPC Lending I, LLC.
10.2            Second Amendment to Credit Agreement dated as of April 13, 2023
              and effective as of April 14, 2023, between the registrant and Sega
              Sammy Holdings Inc.
104           Cover Page Interactive Data File (formatted as inline XBRL)




-2-

© Edgar Online, source Glimpses