TORONTO, April 6, 2018 /PRNewswire/ - The Stars Group Inc.
(NASDAQ: TSG; TSX: TSGI) today announced that it successfully
increased, repriced and extended its U.S. dollar and Euro
denominated first lien term loans and revolving credit facility and
amended and restated the applicable first lien term loan credit
agreement. The Stars Group used approximately $95 million of the increased term loans to fully
repay its existing higher-cost U.S. dollar denominated second lien
term loan and intends to use approximately $250 million by the end of this month to fund a
portion of the previously announced acquisition of an additional
18% equity interest in CrownBet Holdings Pty Limited and CrownBet's
acquisition of William Hill Australia Holdings Pty Ltd. Unless
otherwise noted, all references to "$" are to U.S. dollars and all
references to "€" are to Euros.
The transactions included, among other things, an increase in
the U.S. dollar and Euro denominated first lien term loans to
$2.17 billion and €500 million,
respectively, an extension of the respective maturity dates to
April 6, 2025, and a decrease in
pricing of 50 basis points to LIBOR plus 3.00% and Euribor plus
3.25%, respectively. The Stars Group's existing revolving credit
facility was also increased from $100
million to $225 million and
priced at LIBOR plus 2.75% with a new maturity date of April 6, 2023. The margin for the revolving
credit facility is subject to leverage-based step-downs.
The Stars Group and the lenders also amended the credit
agreement for its first lien term loans to, among other things,
reflect the foregoing transactions and add certain operational and
financial flexibility.
"The successful completion of this transaction not only
underscores the strength of our current business and operations, as
well as the continued support of our existing lenders and interest
of new lenders, but also reinforces our strategy to enhance the
capital structure of The Stars Group," said Brian Kyle, Chief Financial Officer of The Stars
Group. "The transactions will help reduce our currency risk, lower
our effective interest rate, and allow us to successfully pursue
and complete our growth initiatives."
Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Barclays and BMO Capital Markets
were Joint Lead Arrangers and Joint Bookrunners for the amended
first lien facilities.
About The Stars Group
The Stars Group is a leading provider of technology-based
products and services in the global gaming and interactive
entertainment industries. The Stars Group directly or indirectly,
including through its Stars Interactive Group division, owns gaming
and related consumer businesses and brands, such as PokerStars,
PokerStars Casino, BetStars, Full Tilt, and the PokerStars Players
No Limit Hold'em Championship, European Poker Tour, PokerStars
Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker
Tour, PokerStars Festival and PokerStars MEGASTACK live poker tour
and event brands. These brands together have millions of 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. The Stars Group, through certain of these and
other brands, also offers non-poker gaming products, including
casino and sportsbook. The Stars Group, 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, Australia, 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, including,
without limitation, certain financial and operational expectations
and projections, such as those related to the financing
transactions described herein and certain future operational and
growth plans and strategies. Forward-looking statements and
information can, but may not always, be identified by the use of
words such as "anticipate", "plan", "continue", "estimate",
"expect", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "would", "should",
"believe", "objective", "ongoing", "imply", "assumes", "goal",
"likely" 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, technological developments, anticipated
events and trends and regulatory changes that affect The Stars
Group, its subsidiaries, and its and their customers and
industries. Although The Stars Group and management believe the
expectations reflected in such forward-looking statements and
information are reasonable and are based on reasonable assumptions
and estimates as of the date hereof, 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 transactions described
herein and the impact thereof on The Stars Group's business and
financial condition, as well as The Stars Group's expectations
regarding the use of proceeds from such financing transactions.
Other applicable risks and uncertainties include, but are not
limited to, those identified in The Stars Group's annual
information form for the year ended December
31, 2017, including under the heading "Risk Factors and
Uncertainties", and in its management's discussion and analysis for
the year ended December 31, 2017,
including under the headings "Risk Factors and Uncertainties",
"Limitations of Key Metrics and Other Data" and "Key Metrics", each
available on SEDAR at www.sedar.com, EDGAR at www.sec.gov and
The Stars Group's website at www.starsgroup.com, and in other
filings that The Stars Group 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 The Stars Group undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
SOURCE The Stars Group Inc.