Online Gambling Giant Amaya Restructures Debt

Published Friday, July 31, 2015 -
Online Gambling Giant Amaya Restructures Debt

The acquisition of Poker Stars and Full Tilt Poker by Canadian online gambling enterprise Amaya Gaming was a massive purchase with some creative financing making it possible. The firm has grown since the completion of the deal which has enabled Amaya to plan on refinancing its long term debt by restructuring. Amaya announced its plan recently for the repayment of around US$575 million (€524.8 million) of its outstanding $800 million second lien term loan.

 Amaya will repay it loans through the combination of an approximately $400 million incremental first lien term loan and $195 million in cash, the latter of which will include cash and funds generated from the sale of subsidiaries Chartwell and Cryptologic to online gambling solutions provider NYX Gaming.

Amaya has revealed its proposed performance projection expecting revenue in the range of C$314 million (€220.7m/US$242.1m) and C$318 million during the second quarter, while adjusted earnings before interest, tax, depreciation and amortisation could reach between C$135-138 million.

The company is confident with the published statement maintaining, “The corporation believes that the refinancing will reduce certain debt service costs, including interest costs, and will thereby strengthen Amaya's cash flow generation, liquidity and leverage profile.”

Amaya continued to explain the financial restructuring, “The financial results for the second quarter of 2015 reflect year-over-year revenue growth from Amaya's core poker business on a constant currency basis, as well as growth from Amaya's emerging online casino vertical which represented approximately 12% of the anticipated revenues.” “Revenues from online casino almost doubled relative to the first quarter of 2015. Amaya's online sportsbook was in beta form in limited jurisdictions during the second quarter of 2015 and therefore contributed negligible revenues.

“At June 30, 2015, PokerStars and Full Tilt had cumulative play-money and real-money customer registrations of more than 95 million. “Total registrations grew by approximately 1.9 million during the quarter.”






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