Amaya restructures PokerStars debt

Amaya restructures PokerStars debt

Thursday, July 30, 2015 Totally Gaming
Amaya has built funds through the sale of B2B subsidiaries

Amaya is to use cash generated by subsidiary sales to restructure debts accrued by the $4.9bn (€4.49bn) purchase of PokerStars and Full Tilt Poker last year.

The Canadian gaming operator announced that it expects to repay approximately $575m of its outstanding $800m second lien term loan through $195m cash combined with $400m gained from its first lien term financing. The cash will partly come from the $80m sale of Chartwell Technologies and Cryptologic Gaming to NYX Gaming in April.

In a statement, Amaya said: “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.”

Meanwhile, Amaya has said that it expects to post 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 (EBITDA) could reach between C$135-138 million.

The figures are vast increases on the same period in 2014, when the pre-PokerStars Amaya recorded revenues of just C$42.5m and EBITDA of C$14.3m.

The figures are based on Amaya's B2C business, which includes the Full Tilt and PokerStars brands, and excludes contributions from the company’s discontinued B2B businesses.

Amaya added in a statement: “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 per cent 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.”

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