MONTREAL, March 3, 2017 /PRNewswire/ - Amaya Inc.
(NASDAQ: AYA; TSX: AYA) today announced that it successfully
repriced and retranched its U.S. dollar and Euro denominated first
lien term loans and amended the applicable credit agreement
(collectively, the "Financing"). Unless otherwise noted, all
references to "$" are to U.S. dollars and all references to "€" are
to Euros.
The first lien term loan repricing will reduce the applicable
interest rate margin by 50 basis points bringing the U.S. dollar
denominated first lien term loans to LIBOR plus 350 basis points
with a LIBOR floor of 100 basis points and the Euro denominated
first lien term loans to Euribor plus 375 basis points with no
Euribor floor. Amaya also retranched its first lien term loans by
raising €100 million of incremental Euro denominated first lien
debt and using those proceeds to reduce its U.S. dollar denominated
first lien term loans. As a result of the repricing and
retranching, Amaya currently expects to save approximately 13%, or
$15.4 million, of interest expense
annually.
Amaya and the lenders also amended the credit agreement for its
first lien term loans to, among other things, reflect the
repricing, retranching, and waive the required 2016 and 2017 excess
cash flow repayments (as defined and described in the credit
agreement) previously due on March 31,
2017 and March 31, 2018,
respectively. Amaya will use the approximately $48 million of previously allocated 2016 excess
cash flow to pay an additional amount on the remaining balance of
its pre-existing contractual deferred payment obligation by
May 15, 2017.
At the request of certain lenders, the amendment also modifies
the change of control provision to remove the ability of a certain
current shareholder to directly or indirectly acquire control of
Amaya without triggering an event of default and potential
acceleration of the repayment of the debt under the credit
agreement for the first lien term loans.
"The successful completion of this transaction underscores the
strength of our current business and operations, as well as the
continued support of our existing lenders and interest of new
lenders," said Kimberly Fitzgerald,
Amaya's Vice President, Finance and Capital Markets. "The
transaction will help reduce our currency risk, lower our interest
expense, and accelerate the payment of the remaining amounts owed
on our deferred payment obligation."
About Amaya
Amaya is a leading provider of technology-based products and
services in the global gaming and interactive entertainment
industries. Amaya ultimately owns gaming and related consumer
businesses and brands including PokerStars, Full Tilt, BetStars,
StarsDraft and the PokerStars Championship and PokerStars Festival
live poker tour brands (incorporating aspects of the European Poker
Tour, PokerStars Caribbean Adventure, Latin American Poker Tour and
the Asia Pacific Poker Tour). These brands have more than
108 million cumulative registered customers globally and
collectively form the largest poker business in the world,
comprising online poker games and tournaments, sponsored live poker
competitions, marketing arrangements for branded poker rooms in
popular casinos in major cities around the world, and poker
programming and content created for television and online
audiences. Amaya, through certain of these brands, also offers
non-poker gaming products, including casino, sportsbook and daily
fantasy sports. Amaya, through certain of its subsidiaries, is
licensed or approved to offer, or offers under third party licenses
or approvals, its products and services in various jurisdictions
throughout the world, including in Europe, both within and outside of the
European Union, the Americas and elsewhere. In particular,
PokerStars is the world's most licensed online gaming brand,
holding licenses or related operating approvals in 17
jurisdictions.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements and
information within the meaning of the Private Securities Litigation
Reform Act of 1995 and applicable securities laws. Forward-looking
statements and information can, but may not always, be identified
by the use of words such as "expect", "may", "will", and similar
references to future periods or the negatives of these words and
expressions. These statements and information, other than
statements of historical fact, are based on management's current
expectations and are subject to a number of risks, uncertainties,
and assumptions, including market and economic conditions, business
prospects or opportunities, future plans and strategies,
projections, business developments, anticipated events and trends
and regulatory changes that affect Amaya, its customers and its
industries. Although Amaya and management believe the expectations
reflected in such forward-looking statements and information are
reasonable and are based on reasonable assumptions and estimates,
there can be no assurance that these assumptions or estimates are
accurate or that any of these expectations will prove accurate.
Forward-looking statements and information are inherently subject
to significant business, regulatory, economic and competitive
risks, uncertainties and contingencies that could cause actual
events to differ materially from those expressed or implied in such
statements. Specific risks and uncertainties include, but are not
limited to, certain expectations relating to the Financing and the
impact thereof on Amaya's business, as well as Amaya's expectations
regarding the payment of the remaining amounts owed on Amaya's
deferred payment obligation. Other applicable risks and
uncertainties include those identified under the heading "Risk
Factors and Uncertainties" in Amaya's Annual Information Form for
the year ended December 31, 2015 and "Risk Factors and
Uncertainties" and "Limitations of Key Metrics and Other Data" in
its Management's Discuss and Analysis for the three and nine months
ended September 30, 2016, each
available on SEDAR at www.sedar.com, EDGAR at www.sec.gov and
Amaya's website at www.amaya.com, and in other filings that Amaya
has made and may make with applicable securities authorities
in the future. Investors are cautioned not to put undue reliance on
forward-looking statements or information. Any forward-looking
statement or information speaks only as of the date hereof, and
Amaya undertakes no obligation to correct or update any
forward-looking statement or information, whether as a result of
new information, future events or otherwise, except as required by
applicable law.
SOURCE Amaya Inc.