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Long-Term Debt | 3 Months Ended
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Mar. 31, 2022
Long-Term Debt [Abstract] |
Long-Term Debt | 4. LONG-TERM DEBT Long-term debt and the weighted average interest rates as of March 31, 2022 and December 31, 2021 consisted of the following:
Amounts in thousands |  | March 31, 2022 |  | December 31, 2021
Credit agreement - Macquarie |  | $ | 166,175 |  |  | 6.65% |  | $ | 166,600 |  |  | 6.70%
Credit agreements - CPL |  |  | 160 |  |  | 4.53% |  |  | 207 |  |  | 2.12%
UniCredit term loans |  |  | 6,388 |  |  | 2.79% |  |  | 6,994 |  |  | 2.55%
Financing obligation - CDR land lease |  |  | 15,576 |  |  | 14.61% |  |  | 15,378 |  |  | 11.44%
Total principal |  | $ | 188,299 |  |  | 7.15% |  | $ | 189,179 |  |  | 6.89%
Deferred financing costs |  |  | (7,304) |  |  |  |  |  | (7,695) |  |  |
Total long-term debt |  | $ | 180,995 |  |  |  |  | $ | 181,484 |  |  |
Less current portion |  |  | (3,885) |  |  |  |  |  | (3,958) |  |  |
Long-term portion |  | $ | 177,110 |  |  |  |  | $ | 177,526 |  |  |
Credit Agreement – Macquarie Capital On December 6, 2019, the Company entered into a $180.0 million credit agreement with Macquarie Capital Funding LLC, as swingline lender, administrative agent and collateral agent, Macquarie Capital (USA) Inc., as sole lead arranger and sole bookrunner, and the Lenders and L/C Lenders party thereto. The Macquarie Credit Agreement replaced the Company’s credit agreement with the Bank of Montreal (the “BMO Credit Agreement”). The Macquarie Credit Agreement provides for a $170.0 million term loan (the “Macquarie Term Loan”) and the $10.0 million Revolving Facility (the “Macquarie Revolving Facility”). The Macquarie Revolving Facility includes up to $5.0 million available for the issuance of letters of credit. The Company used proceeds from the Macquarie Term Loan to fund the acquisition of MTR, CCG and CCV (the “Acquired Casinos”), for the repayment of approximately $52.0 million outstanding under the BMO Credit Agreement and for general working capital and corporate purposes. As of March 31, 2022, the outstanding balance of the Macquarie Term Loan was $166.2 million and the Company had $10.0 million available to borrow on the Macquarie Revolving Facility. The Macquarie Term Loan may be prepaid without penalty or premium. On April 1, 2022, the Company entered into the Goldman Credit Agreement (as defined in Note 13, “Subsequent Events”), repaid the Macquarie Term Loan and terminated the Macquarie Credit Agreement. See Note 13, “Subsequent Events”, for additional information regarding the Goldman Credit Agreement. Commitment fees related to the Macquarie Revolving Facility of less than $0.1 million were recorded as interest expense in the condensed consolidated statements of earnings (loss) for the three months ended March 31, 2022 and 2021. Deferred financing costs consist of the Company’s costs related to the financing of the Macquarie Credit Agreement. The Company amortized $0.4 million for the three months ended March 31, 2022 and 2021, respectively, relating to Macquarie Credit Agreement deferred financing costs. These costs are included in interest expense in the condensed consolidated statements of earnings (loss) for the three months ended March 31, 2022 and 2021. Casinos Poland CPL’s PLN 3.0 million term loan and PLN 4.0 million term loan with mBank were paid in full in November 2021. The term loans bore an interest rate of 1-month Warsaw Interbank Offered Rate (“WIBOR”) plus 1.70%. As of March 31, 2022, CPL had one credit agreement and two short-term lines of credit with mBank as detailed below. As of March 31, 2022, CPL was in compliance with all applicable financial covenants under these agreements. The credit agreement between CPL and mBank is a PLN 2.5 million term loan that was used to purchase gaming and other equipment for the Marriott Hotel in Warsaw. The credit agreement bears interest at an interest rate of 1-month WIBOR plus 1.90%. The credit agreement has a four year term through November 30, 2022. As of March 31, 2022, the credit agreement had an outstanding balance of PLN 0.7 million ($0.2 million based on the exchange rate in effect on March 31, 2022). CPL has no further borrowing availability under this credit agreement. The credit agreement is secured by a building owned by CPL in Warsaw and a pledge of slot machines. In addition, CPL is required to maintain cash inflows of PLN 7.0 million to its account held with mBank and to comply with financial covenants, including covenants that relate to profit margins not lower than 0.5%, liquidity ratios no less than 0.6 and a debt ratio not higher than 70%. In May 2020, the credit agreement was amended to defer three months of payments to November 30, 2022. As of March 31, 2022, CPL also had a short-term line of credit with mBank used to finance current operations. The line of credit has a borrowing capacity of PLN 5.0 million bearing an interest rate of overnight WIBOR plus 2.40%. As of March 31, 2022, the credit facility had no outstanding balance and PLN 5.0 million ($1.2 million based on the exchange rate in effect on March 31, 2022) was available for additional borrowing. The credit agreement is secured by a building owned by CPL in Warsaw. The credit facility contains a number of covenants applicable to CPL, including covenants that require CPL to maintain certain liquidity and liability to asset ratios. The line of credit was amended in April 2022 extending the line of credit through April 27, 2023. As of March 31, 2022, CPL had an additional short-term line of credit with mBank used to finance CPL’s current operations. The line of credit bears an interest rate of 1-month WIBOR plus 2.10% with a borrowing capacity of PLN 10.0 million ($2.4 million based on the exchange rate in effect on March 31, 2022), of which PLN 7.5 million ($1.8 million based on the exchange rate in effect on March 31, 2022) can be used only to secure bank guarantees. The credit agreement has a two year term through October 14, 2022. As of March 31, 2022, the credit facility had no outstanding balance and PLN 2.5 million ($0.6 million based on the exchange rate in effect on March 31, 2022) was available for borrowing. The credit agreement is secured by a building owned by CPL in Warsaw and a liquidity guarantee provided by Bank Gospodarstwa Krajowego for the amount of PLN 8.0 million. In addition, CPL is required to maintain cash inflows of PLN 5.0 million to its account held with mBank and to comply with financial covenants, including covenants that relate to profit margins not lower than 0.4%, liquidity ratios not less than 1.3 and a debt ratio not higher than 60%. Under Polish gaming law, CPL is required to maintain PLN 3.6 million in the form of deposits or bank guarantees for payment of casino jackpots and gaming tax obligations. mBank issued guarantees to CPL for this purpose totaling PLN 3.6 million ($0.9 million based on the exchange rate in effect on March 31, 2022). The mBank guarantees are secured by land owned by CPL in Kolbaskowo, Poland as well as a deposit of PLN 1.2 million ($0.3 million based on the exchange rate in effect on March 31, 2022) with mBank and will terminate in June 2024 and January 2026, respectively. CPL also is required to maintain deposits or provide bank guarantees for payment of additional prizes and giveaways at the casinos. The amount of these deposits varies depending on the value of the prizes. CPL maintained PLN 0.7 million ($0.2 million based on the exchange rate in effect on March 31, 2022) in deposits for this purpose as of March 31, 2022. These deposits are included in deposits and other on the Company’s condensed consolidated balance sheets. Century Resorts Management As of March 31, 2022, CRM had two credit agreements with UniCredit (the “UniCredit Term Loans”). The first credit agreement (“UniCredit Term Loan 1”) is a GBP 2.0 million term loan used for construction and fitting out of Century Casino Bath, a casino in Bath, England that the Company closed in March 2020. In November 2021, the Company amended the UniCredit Term Loan 1 to convert it into a USD term loan beginning December 31, 2021. The term loan matures September 30, 2023 and bears interest at LIBOR plus 1.625%. If LIBOR is not available, the interest rate will be determined based on a quoted rate from leading banks in the London interbank market. As of March 31, 2022, the amount outstanding on UniCredit Term Loan 1 was $0.8 million. CRM has no further borrowing availability under the loan agreement. The loan is unsecured and has no financial covenants. The second credit agreement (“UniCredit Term Loan 2”) is a EUR 6.0 million term loan converted from a $7.4 million line of credit on June 23, 2021. In August 2018, CRM entered into a loan agreement with UniCredit for a revolving line of credit to be used for acquisitions and capital expenditures at the Company’s existing operations or new operations. In March 2020, CRM borrowed $7.4 million with a 12 month term under the UniCredit Agreement. In March 2021, the term of the line of credit was extended to June 2021, when it was converted into UniCredit Term Loan 2. The term loan matures on December 31, 2025 and bears interest at a rate of 2.875%. As of March 31, 2022, the amount outstanding was EUR 5.0 million ($5.6 million based on the exchange rate in effect on March 31, 2022) and the Company had no further borrowings available. UniCredit Term Loan 2 is secured by a EUR 6.0 million guarantee by the Company and has no financial covenants. Century Downs Racetrack and Casino CDR’s land lease is a financing obligation of the Company. Prior to the Company’s acquisition of its ownership interest in CDR, CDR sold a portion of the land on which the REC project is located and then entered into an agreement to lease back a portion of the land sold. The Company accounts for the lease using the financing method by accounting for the land subject to lease as an asset and the lease payments as interest on the financing obligation. Under the land lease, CDR has four options to purchase the land. The first option date is July 1, 2023. Due to the nature of the CDR land lease financing obligation, there are no principal payments due until the Company exercises its option to purchase the land. Lease payments are applied to interest only, and any change in the outstanding balance of the financing obligation relates to foreign currency translation. As of March 31, 2022, the outstanding balance on the financing obligation was CAD 19.5 million ($15.6 million based on the exchange rate in effect on March 31, 2022). As of March 31, 2022, scheduled maturities related to long-term debt were as follows:
Amounts in thousands |  | Macquarie Credit Agreement |  | Casinos Poland ‎Credit Agreements |  | UniCredit Term Loans |  | Century Downs ‎Land Lease |  | Total
2022 |  | $ | 1,275 |  | $ | 160 |  | $ | 1,518 |  | $ | — |  | $ | 2,953
2023 |  |  | 1,700 |  |  | — |  |  | 1,892 |  |  | — |  |  | 3,592
2024 |  |  | 1,700 |  |  | — |  |  | 1,489 |  |  | — |  |  | 3,189
2025 |  |  | 1,700 |  |  | — |  |  | 1,489 |  |  | — |  |  | 3,189
2026 |  |  | 159,800 |  |  | — |  |  | — |  |  | — |  |  | 159,800
Thereafter |  |  | — |  |  | — |  |  | — |  |  | 15,576 |  |  | 15,576
Total |  | $ | 166,175 |  | $ | 160 |  | $ | 6,388 |  | $ | 15,576 |  | $ | 188,299

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