Amaya commits to Rational payments

Amaya commits to Rational payments

Wednesday, January 11, 2017 Posted by Luke Massey
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Amaya has confirmed it will pay the deferred $198m balance relating to the Rational Group purchase in 2014 in separate tranches throughout 2017.

The company said it has taken this route following a review of its 2017 financing options. The new scheme replaces the need to pay the balance on 1 February.

The outstanding balance will be paid utilising Amaya’s unrestricted cash and from further cash-flows generated from its operations this year.

The Toronto-listed company said that staggering its payments would be the best and most flexible option for its operations. By taking this route, it means Amaya will avoid incurring additional debt or potential amended fees, costs or expenses.

Last year Amaya paid approximately $200m in deferred payments in November, resulting in approximately $2.3 million in savings towards the outstanding balance

Rafi Ashkenazi, chief executive, said: “Based on our operations and performance in 2016, we are confident in our ability to repay the balance of the deferred purchase price in a timely manner.

"We believe that our current plan speaks to the strong cash flow generation of our business model and will allow us to continue investing in the success of our business while meeting our pre-existing contractual obligations to the former owners."

Totally Gaming Says: Entering 2017, Amaya will not want to have any financial headaches as it looks to bring out new products in new markets. Getting the deferred payment out of the way certainly clears the way for 2017 which could be a pivotal year for Amaya and the poker market in general.


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