Gaming company Amaya Gaming has announced that one of its subsidiaries has entered into cross-currency swap agreements that it anticipates will result in lower interest payments on existing debt and mitigate the impact of fluctuations in the euro to US dollar exchange rate.
Confirming the news in a statement, Amaya said that the agreements would enable its subsidiary to create synthetic euro-denominated debt with fixed euro interest payments at an average rate of 4.6016%.
This will be in place of US dollar interest payments bearing a minimum floating interest rate of 5%, which is related to the $1.75 billion (€1.65 billion) seven-year first lien term loan secured by the subsidiary on August 1, 2014.
Amaya stated that the interest and principal payments for the agreements, which will mature in five years, will be made at a euro/US dollar foreign exchange rate of 1.1102.
The gaming company also noted that the agreements have been designed to “improve matching of the currency denomination of the assets and liabilities of Amaya”.
source : www.igamingbusiness.com