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.