RE:Debt refinancing
NYX Gaming arrages debt refinancing with ARES
2017-06-23 04:29 PT - News Release
Mr. Huw Thomas reports
NYX GAMING GROUP ANNOUNCES COMMITMENT FOR DEBT REFINANCING AND DEBENTURE REDEMPTION
NYX Gaming Group Ltd. has entered into a commitment with ARES Management Ltd. to refinance its existing debt. The transaction is expected to close in July 2017, contemporaneously with the redemption of 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, each with a due date of December 31, 2019 (collectively, the "Debentures").
Additionally, the Company plans to repay its 6% unsecured convertible debentures and all outstanding amounts of its revolving credit facility. The revolving credit facility will be expanded to pounds sterling15.0 million to provide increased financial flexibility. The resulting denomination of the Company's debt will now more closely match its geographical revenue concentration. It is expected that approximately 66% of the Company's debt will be denominated in British pound sterling, 31% in Euros and the remainder in Canadian dollars.
As previously reported, the Company has been focused on streamlining its capital structure through a refinancing of its existing indebtedness. "Over the prior twelve months, we have made meaningful strides toward accomplishing our strategic plan intended to significantly improve our operating model," said Matt Davey, Chief Executive Officer of NYX Gaming Group. "This includes enhancing our executive management team, integrating our recently acquired companies and exiting non-core businesses, and now reducing our cost of capital and simplifying our capital structure."
Eric Matejevich, Chief Financial Officer, added, "This transaction benefits NYX in several ways. In addition to extending the maturity of certain of our debt instruments, we expect approximately $5 million of annual interest expense savings, which is equivalent to a 16% decrease in annual cash interest payments. This will improve our liquidity position, benefit free cash flow and earnings per share in the coming years, and provide added financial flexibility to enhance shareholder value."
The Debenture redemption price has been determined in accordance with the provisions of the Indenture and the First Supplemental Indenture related to the Debentures. The redemption price will be paid in cash and is $1,070 per Debenture together with accrued and unpaid interest on the Debentures up to, but excluding the Redemption Date.
Notices of redemption are being delivered today, June 23, 2017, to registered holders, including CDS & Co. ("CDS") and the trustee, TSX Trust Company.
Non-registered holders (banks, brokerage firms or other financial institutions) who maintain their interests in the Debentures through CDS should contact their CDS customer service representative with any questions about the redemption. Alternatively, beneficial holders with any questions about the redemption should contact their respective brokerage firm or financial institution, which holds interests in the Debentures through CDS on their behalf.
The Series A Debentures currently trade on the TSX Venture Exchange and will be delisted immediately following close of the transaction.
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(TM) (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(TM).
We seek Safe Harbor.