Amaya restructures deferred Rational Group payments for 2017

Following a review of its financing options, the governance of Toronto TSX-listed Amaya Inc has confirmed that it will pay its $197.7 million balance relating to the deferred purchase price for acquired Rational Group assets (2014) throughout the course of 2017.

Updating investors, Amaya governance detailed the changes to its payment plan which was due for 1 February 2017. The operator has moved to pay its balance throughout 2017, using its ‘unrestricted cash’ and ‘cash-flow generated from operations’.

Having reviewed financing options available for the payment, Amaya governance detailed that its staggered payments would be ‘the least expensive and most flexible financing option at this time as it avoids, among other things, incurring additional term debt, amendment fees and associated costs and expenses’.

Amaya Chief Executive Rafi Ashkenazi commented on the corporate update “Based on our operations and performance in 2016, we are confident in our ability to repay the balance of the deferred purchase price in a timely manner.”

“We believe that our current plan speaks to the strong cash flow generation of our business model and will allow us to continue investing in the success of our business while meeting our pre-existing contractual obligations to the former owners,

Updating the market, Amaya disclosed that former Rational Group owners had agreed to the new payment structure for 2017. Last year Amaya paid approximately $200 million in deferred payments by November 2016, resulting in approximately $2.3 million in savings towards the outstanding balance.