Amaya Gaming has revealed that it intends to refinance certain of its outstanding long-term indebtedness, which was incurred to partially finance the acquisition of the PokerStars and Full Tilt brands in August of last year.
The company said the refinancing will include the repayment of approximately US$575 million (€524.8 million) of its outstanding $800 million second lien term loan.
Amaya will fund the repayment 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 on the balance sheet and funds generated from the sale of Chartwell and Cryptologic to NYX Gaming.
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 set out its expectation for the company’s performance in the three months through to Jun3 30, 2015.
The firm expects to achieve 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.
These expectations are based on Amaya’s B2C business, which includes the Full Tilt and PokerStars brands, and excludes contributions from the company’s B2B businesses, which will be classified as discontinued operations with their assets and liabilities held for sale.
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% 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.”
