Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 19

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 19
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 & Racing (“Fairmount”). This payment, which represents a one-time gaming license fee to register the gaming positions in the casino, was recorded as an indefinite-lived operating license. Indefinite-lived intangibles are tested for impairment annually or when triggering events occur. There were no indicators of impairment of indefinite-lived intangibles as of June 30, 2025.

11

Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

Note 9. Debt

The Company’s debt as of June 30, 2025 and December 31, 2024, consisted of the following (in thousands):June 30,2025December 31,2024Senior Secured Credit Facility:Revolving credit facility$23,000 $6,500 Term Loan284,375 293,125 Delayed Draw Term Loan289,775 297,750 Total borrowings597,150 597,375 Add: Remaining premium on interest rate caplets financed as debt583 1,076 Total debt597,733 598,451 Less: Debt issuance costs(2,250)(3,072)Total debt, net of debt issuance costs595,483 595,379 Less: Current maturities(34,033)(34,443)Total debt, net of current maturities$561,450 $560,936 As of June 30, 2025, the weighted-average interest rate on the Company’s borrowings was approximately 6.5%.Interest rate capletsThe Company manages its exposure to some of its interest rate risk through the use of interest rate caplets, which are derivative financial instruments. On January 12, 2022, the Company hedged the variability of the cash flows attributable to changes in the 1-month Secured Overnight Financing Rate (“SOFR”) interest rates on the first $300 million of the term loan under the Company’s existing credit agreement, as amended, by entering into a 4-year series of 48 deferred premium caplets (“caplets”), which are set to expire in January 2026.The Company recognized an unrealized loss, net of taxes, on the change in fair value of the caplets of $0.8 million and $2.0 million for the three and six months ended June 30, 2025, respectively. In comparison, the Company recognized an unrealized loss, net of