Affinity Interactive reported that second quarter EBITDAM declined nearly 15% YoY as the gaming company reiterated it plans to refinance its bonds next year, said two sources familiar with the matter.

Adjusted EBITDAM fell to USD 10.4m in the quarter ended 30 June, from USD 12.2m a year earlier, while net revenue declined to USD 68.5m from USD 70.9m, according to the sources.

On a call with investors on Tuesday (1 September), Affinity management attributed the softer results to inflation, macroeconomic uncertainty and shifting consumer habits, the sources said. The decline came despite Affinity realizing roughly USD 18m of a targeted USD 20m in annualized cost savings.

Management said it plans to make its next scheduled interest payment of USD 18.8m on 1 December for Affinity’s 6.875% senior secured first lien notes due 15 December 2027, the sources said. Executives said they plan to address the bonds next year, “well in advance” of the maturity date.

To facilitate the refi, Affinity sponsor Z Capital Group earlier this year created Apex Hospitality by combining Affinity with two other investments, Xperience Restaurant Group and Mrs. Fields Gifting & Licensing, to build a scaled hospitality platform spanning casinos, casual dining, e-commerce and digital verticals.

The combination will allow Affinity to expand the collateral pool for the bond refinancing to encompass all of Apex Hospitality rather than just Affinity assets, as reported.

Apex is targeting a pro forma adjusted EBITDA run rate of USD 70m to USD 75m in 2026, scaling to USD 80m to USD 90m in 2027, according to the sources.

Executives during the call confirmed to investors that Affinity terminated the lease on its Primm Valley Casino Resorts effective 4 July, following the cessation of operations at the property, the sources said.

Management said the move removes USD 10m to USD 15m of anticipated annual cash drain and eliminates roughly USD 200m in future lease obligations. Affinity had previously disclosed plans to close the Nevada-based resort by July.

Liquidity stood at USD 16.2m as of 30 August, the company said. Affinity has been drawing on its revolver, provided by Z Capital affiliates since last December when the sponsor stepped in to refinance a maturing credit facility.

The extension of the revolver came as a boon for Affinity last year as it struggled with stagnant operating performance and faced questions throughout 2025 over how it would address the maturity.

Ahead of the revolver maturity, Affinity bondholders engaged Perella Weinberg Partners and Akin, Debtwire reported previously.

The issuer’s USD 475m 6.875% senior secured notes were last quoted at 48.575, according to Markit. The notes have been moving down in recent months, having traded in the spring at 62.25.

An Affinity representative confirmed the earnings call.