Amaya plans $2.9 billion credit facility for Oldford Group purchase

By Sara Rosenberg

New York, June 13 – Amaya Gaming Group Inc. plans on getting a $2.9 billion senior secured credit facility to help fund its acquisition of Oldford Group Ltd., parent company of Rational Group Ltd., according to a news release.

Deutsche Bank, Barclays and Macquarie Capital (USA) Inc. are leading the financing.

The facility consists of a $100 million revolver, a $2 billion first-lien term loan and an $800 million second-lien term loan.

Under the agreement, Oldford Group is being purchased for $4.9 billion, including certain deferred payments, subject to certain other customary adjustments.

Other funds for the transaction will come from $1 billion to be raised through the issuance of convertible preferred shares on a private-placement basis at an initial conversion price of C$24 per convertible preferred share, $642 million from an equity issuance and $238 million in cash on hand.

For calendar year 2013, pro forma combined revenue was $1.3 billion, EBITDA was $474.8 million and adjusted EBITDA was $473.8 million.

Closing is expected on or about Sept. 30, subject to approval by Amaya’s shareholders and customary conditions, including receipt of all regulatory approvals.

The combined company’s significant cash flow is expected to allow for rapid debt repayment and provide sufficient liquidity and flexibility to support ongoing growth prospects.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services. Oldford Group is an Onchan, Isle of Man-based operator of gaming and related businesses and brands.

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