NYX Gaming Group Closes ARES Management Limited Transaction
NYX Gaming Group has announced that debt refinancing regarding the previously announced transaction with ARES Management Limited has been completed.
The company has refinanced its existing debt at the same time amending its existing senior secured credit facilities agreement.
This deal consisted of $176 million in term loan facility, adding close to $80 million more and expanding its revolving credit facility from $6.5 million to $19.6 million. The amended facilities have a mandatory date of 20 November 2021, the same as the existing $176 million term loan facility and are pre-payable at 101% of principal balance within the first three years.
The company was pleased to announce the debt refinancing, claiming it will improve the NYX Gaming Group’s capital structure, better align the lending currencies to revenue and provide better flexibility and liquidity.
“The expansion of our credit facilities agreement with ARES Management, a leading global alternative asset manager, demonstrates the confidence they have in our business.”, Chief Executive of NYX, Matt Davey, said.
Total Annual Cash Interest Rate Decreased
The newly closed ARES Management transaction debt refinancing has directly influenced the total annual cash interest expense, pushing it down from $28 million to $23 million.
“Debt refinancing was an important step to improving our capital structure, significantly lowering overall cost of capital while extending the maturities of the instruments.”, Chief Financial Offier at the company, Eric Matejevich, said.
What is more, the simplified prepayment terms now enable NYX to get in a better position to deleverage through organic growth in EBITDA and free cash flow.
The positive breakthrough come as another piece of good news after the May report which claimed that NYX Gaming registered a near to 200% sales growth in the first quarter of 2017, which shot up to $58.9 million from $16.8 million for the same period in 2016.