NYX Gaming Group  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.”