Consolidation under a single primary lender
lowers overall cost of capital and facilitates debt
reduction
LAS VEGAS, July 24, 2017 /CNW/ - NYX Gaming Group Limited
(TSXV: NYX) ("NYX Gaming Group", "NYX" or the "Company"), a leading
digital gaming software supplier to casino, sportsbook, lottery and
bingo operators across the globe, today announced that it has
closed its previously announced transaction with ARES Management
Limited to refinance its existing debt. Under the
transaction, NYX has amended its existing senior secured credit
facilities agreement consisting of a £135.0 million term loan
facility to add €74.9 million in term loan facilities and to expand
its revolving credit facility from £5.0 million to £15.0 million
("Amended Facilities").
The Amended Facilities were contemporaneously used to redeem all
of the Company's outstanding 11.0% Senior Secured Series A
Debentures, 11.0% Senior Secured Series B Debentures and 11.0%
Senior Secured Series C Debentures. In addition, the Company
has repaid its CAD $10.0 million, 6%
Unsecured Debentures.
"The completion of our debt refinancing improves our capital
structure, better aligns our lending currencies to revenue, and
provides greater flexibility and liquidity for NYX to execute as an
integrated global group," said Matt
Davey, Chief Executive Officer of NYX Gaming Group.
"The expansion of our credit facilities agreement with ARES
Management, a leading global alternative asset manager,
demonstrates the confidence they have in our business."
The Amended Facilities have two components – a €43.1 million
unitranche term facility, which bears interest at an annual rate of
EURIBOR plus 700 basis points (EURIBOR floor of 0.5%), and a €31.8
million super senior term facility, which bears interest at an
annual rate of EURIBOR plus 375 basis points (EURIBOR floor of
0.0%). The Amended Facilities have the same maturity date as
the existing £135.0 million term loan facility – November 20, 2021. They are prepayable at
101% of the principal balance outstanding within the first three
years and at par thereafter. The revolving credit facility
matures on May 20, 2021.
Eric Matejevich, Chief Financial
Officer, added, "Debt refinancing was an important step to
improving our capital structure, significantly lowering overall
cost of capital while extending the maturities of the instruments.
With this transaction, our estimated total annual cash interest
expense is down $5 million, from
$28 million historically to
$23 million going forward. And
with simplified prepayment terms, NYX is now in a better position
to deleverage through organic growth in EBITDA and free cash
flow."
Caution Regarding Forward-Looking Statements
Certain statements included herein, including those that express
management's expectations or estimates of the Company's future
performance, constitute "forward-looking statements" within the
meaning of applicable securities laws. Any statements that are
contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward-looking statements are often identified by terms such as
"may", "will", "should", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "potential" or the negative of these terms or
other similar expressions. Forward-looking statements are based on
certain assumptions regarding the Company's expected growth,
results of operations, performance, industry trends and growth
opportunities. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive risks, uncertainties
and contingencies that could cause actual results to differ
materially from those expressed or implied in such statements.
Because of the factors described herein, investors are cautioned
not to put undue reliance on forward-looking statements, whether as
a result of new information, future events or otherwise. Applicable
risks and uncertainties include, but are not limited to: credit,
market, currency, operational, liquidity and funding risks,
including changes in economic conditions, interest rates or tax
rates, the impact of government regulation on the online gaming
industry and the risk that such regulation is subject to change,
competition from other providers of online gaming services, the
possibility that the Company may be unable to successfully
integrate the acquired businesses, the risks associated with
international and foreign operations, the impact of consolidations
in the online gaming industry and the other risks identified under
the heading "Risk Factors" in the Company's final long form
prospectus dated December 18, 2014
and final short form prospectuses dated July
9, 2015 and July 14, 2016,
each as filed on SEDAR at www.sedar.com, and in other filings that
NYX Gaming Group may make with applicable securities authorities in
the future. The forward-looking statements contained herein reflect
NYX Gaming Group's current views with respect to future events, and
except as required by law, NYX Gaming Group does not intend, and
undertakes no obligation, to update any forward-looking statements
to reflect, in particular, new information or future events, or
otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About NYX Gaming Group Limited
NYX Gaming Group Limited is a leading digital gaming provider,
headquartered in Las Vegas,
Nevada, USA, with a staff of more than 1,200 employees
globally. NYX delivers value by adhering to the highest standards
of customer service, probity, and responsibility. It has one of the
broadest distribution bases in the industry, with over 200 unique
customers.
The award-winning NYX OGS™ (Open Gaming System), which allows
licensees to leverage the best-of-breed, multi-vendor casino
content from around the world, is acknowledged to be the industry's
market-leading gaming offering. From its own studios and a broad
partner network of the most innovative third party suppliers, NYX
offers customers a wide portfolio of content, with access to over
2,000 game titles, via OGS™.
In addition, NYX's award winning sports betting division OpenBet
is utilized and trusted by leading sports book operators, with its
scale and performance world-renowned. In 2016, the OpenBet
sportsbook processed more than two billion bets and broke new
records at the 2017 Grand National, where it processed 68,000
bets-per-minute.
NYX Gaming Group Limited is listed on the TSX Venture Exchange
under the symbol NYX. For further information about the Company,
including press releases, links to SEDAR filings and other
financial information, please visit the Company's investor
relations website at www.nyxgaminggroup.com/investors.
SOURCE NYX Gaming Group Limited