Streamlined debt structure expected to reduce
annual interest expense by $5
million
LAS VEGAS, June 23, 2017 /CNW/ - NYX Gaming Group Limited
(TSXV:NYX) ("NYX Gaming Group" or the "Company"), 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."
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.
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.
Investors are cautioned not to put undue reliance on
forward-looking statements. 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.
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 more information about the group visit:
www.nyxgaminggroup.com.
SOURCE NYX Gaming Group Limited