Related Parties

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Related Parties

12. Related Parties

HG Vora Special Opportunities Master Fund Limited (“HG Vora”) (a purchaser of our Senior Secured Notes issued on May 20, 2021) is the beneficial owner of approximately 13.13% of our common stock as of June 30, 2021, including 400,000 shares underlying warrants to purchase common stock. The portion of the Company’s aggregate senior debt of $324.8 million at June 30, 2021, and $313.3 million at December 31, 2020, held by HG Vora at June 30, 2021 and December 31, 2020 was $55.3 million and $0.0 million, respectively. Interest expense payable to HG Vora for the three months ended June 30, 2021 and 2020 amounted to $0.5 million and $0.0 million, respectively, and for the six months ended June 30, 2021 and 2020 amounted to $0.5 million and $0.0 million, respectively. In addition, $0.5 million and $0.0 million of accrued interest payable was due to HG Vora at June 30, 2021 and December 31, 2020, respectively. HG Vora was also an investor in Leisure Acquisition Corp., a special purpose acquisition company affiliated with two members of our management which completed its business combination on June 30, 2021.

Macquarie Corporate Holdings Pty Limited (UK Branch) (“Macquarie UK”), (an arranger and lending party under our RCF Agreement) is an affiliate of MIHI LLC, which beneficially owned approximately 16.61% of our common stock as of June 30, 2021, including 1,000,000 shares underlying warrants to purchase common stock. Macquarie UK was also one of the lending parties with respect to our previous senior secured term loans and revolving credit facility under our prior senior facilities agreement. The portion of the Company’s aggregate senior debt of $324.8 million at June 30, 2021, and $313.3 million at December 31, 2020 held by Macquarie UK at June 30, 2021 and December 31, 2020 was $0.0 million and $30.7 million, respectively. Interest expense payable to Macquarie UK for the three months ended June 30, 2021 and 2020 amounted to $0.3 million and $0.6 million, respectively, and for the six months ended June 30, 2021 and 2020 amounted to $0.9 million and $1.1 million, respectively. In addition, $0.0 million and $0.6 million of accrued interest payable was due to Macquarie UK at June 30, 2021 and December 31, 2020, respectively. MIHI LLC is also a party to a stockholders agreement with the Company and other stockholders, dated December 23, 2016, pursuant to which, subject to certain conditions, MIHI LLC, jointly with Hydra Industries Sponsor LLC, are permitted to designate two directors to be nominated for election as directors of the Company at any annual or special meeting of stockholders at which directors are to be elected, until such time as MIHI LLC and Hydra Industries Sponsor LLC in the aggregate hold less than 5% of the outstanding shares of the Company.

We incurred certain offering expenses in connection with an underwritten public offering of shares held by a significant stockholder, the Landgame Trust, which closed on June 1, 2021, as to which our expenses were reimbursed by the stockholder. For the six months ended June 30, 2021, the aggregate amount invoiced for reimbursement was $0.2 million. The selling stockholder sold an aggregate of 6,217,628 shares in the offering (including 810,995 shares subject to an over-allotment option that was exercised in full) at an offering price of $9.25 per share, less underwriting discounts and commissions of $0.4625 per share. One of the participating underwriters in the offering was Macquarie Capital (USA) Inc., an affiliate of MIHI LLC (see paragraph above), pursuant to which it purchased 870,468 of the shares including 113,539 shares subject to the over-allotment option.