NOTE

LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	December 31,
	2019			2018
First Lien Credit Facilities:
Term loans, interest at LIBOR or base rate plus 3.5% (5.2% at December 31, 2019), net of unamortized discount and deferred loan costs of $9.0 million and $10.9 million at December 31, 2019 and 2018, respectively.	$	522,989		$	526,461
Equipment long-term note payable and finance leases		1,737			1,422
Total debt		524,727			527,883
Less: Current portion		(6,038	)		(5,959	)
Long-term debt	$	518,689		$	521,924

First Lien Credit Facilities

June 6, 2017 (

the “Closing Date”), AP Gaming I, LLC (the “Borrower”), a wholly owned indirect subsidiary of the Company, entered into a

first

lien credit agreement (“the First Lien Credit Agreement”), providing for

$450.0

million in term loans and a

$30.0

million revolving credit facility (the “First Lien Credit Facilities”). The proceeds of the term loans were used primarily to repay the Company's then existing term loans, other indebtedness, to pay for the fees and expenses incurred in connection with the foregoing and otherwise for general corporate purposes.

December 6, 2017,

the Borrower entered into incremental facilities for

$65.0

million in term loans (the

“December

Incremental Term Loans”). The net proceeds of the

December

Incremental Term Loans were used to finance the acquisition of electronic gaming machines and related assets operated by Rocket Gaming Systems (“Rocket”) and to pay fees and expenses in connection therewith and for general corporate purposes.

An additional

$1.0

million in loan costs were incurred related to the issuance of the

December

Incremental Term Loans. Given the composition of the lender group, the transaction was accounted for as a debt modification and, as such,

$0.9

million in

third

-party costs were expensed and included in the loss on extinguishment and modification of debt. The remaining amount was capitalized and will be amortized over the term of the agreement.

February 8, 2018,

the Borrower completed the repricing of its existing

$513

million term loans under its First Lien Credit Agreement (the “Term Loans”). The Term Loans were repriced from

550

basis points to

425

basis points over LIBOR. The LIBOR floor remained at

100

basis points.

February 8, 2018,

in connection with the repricing of the Term Loans,

third

-party costs of

$1.2

million were expensed and included in the loss and modification of debt. Existing debt issuance costs of

$0.4

million were written-off and also included in the loss on extinguishment and modification of debt.

October 5, 2018,

the Borrower entered into an Incremental Assumption and Amendment Agreement

No.

(the “Incremental Agreement

No.

2”

) with certain of the Borrower’s subsidiaries, the lenders party thereto from time to time and the Administrative Agent. The Incremental Agreement

No.

amended and restated that certain First Lien Credit Agreement, dated as of

June 6, 2017,

as amended on

December 6, 2017

and as amended and restated on

February 8, 2018 (

the “Existing Credit Agreement”), among the Borrower, the lenders party thereto, the Administrative Agent and other parties named therein (the “Amended and Restated Credit Agreement”), to (a) reduce the applicable interest rate margin for the Term B Loans (as repriced, the “Repriced Term B Loans”) under the Credit Agreement by

0.75%

(which shall increase by an additional

0.25%

if at any time the Borrower receives a corporate credit rating of at least

from Moody’s, regardless of any future rating) and (b) provide for the incurrence by the Borrower of incremental term loans in an aggregate principal amount of

$30

million (the “Incremental Term Loans” and together with the Repriced Term B Loans, the “Term B Loans”).

October 5, 2018,

in connection with the repricing of the Term Loans,

third

-party costs of

$1.5

million were expensed and included in the loss on extinguishment and modification of debt.

August 30, 2019,

the Borrower entered into Amendment

No.

(the "Repricing Amendment") to the credit agreement. The Repricing Amendment reduced the interest rate margin on the revolving credit facility to the same interest rate margin as the term loans issued under the Amended and Restated Credit Agreement.

As of

December

31,

2019,

we were in compliance with the required covenants of our debt instruments.

Equipment Long Term Note Payable and Finance Leases

The Company has entered into a financing agreement to purchase certain gaming devices, systems and related equipment and has entered into leases for vehicles that are accounted for as finance leases, as described in Item

15.

“Exhibits and Financial Statement Schedules” Note

Scheduled Maturities of Long-Term Debt

Aggregate contractual future principal payments (excluding the effects of repayments for excess cash flow) of long-term debt for the years following

December

31,

2019,

are as follows (in thousands):

For the year ending December 31,
2020	$	6,038
2021		6,005
2022		5,768
2023		5,470
2024		510,446
Thereafter		—
Total scheduled maturities		533,727
Unamortized debt discount and debt issuance costs		(9,000	)
Total debt	$	524,727