NYX Announces Commitment for Debt Refinancing
Streamlined debt structure expected to reduce annual interest expense by $5 million
NYX Gaming Group, today announced that it has entered into a commitment with ARES Management Limited 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 £15.0 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.”