Amaya announces cross currency swap agreements

Amaya

Amaya Gaming has announced that a subsidiary of the Corporation  has entered into cross currency swap agreements  that it anticipates will result in lower interest payments on existing debt and mitigate the impact of fluctuations in the Euro to US Dollar exchange rate.

The Swap Agreements allow the Subsidiary to create synthetic Euro-denominated debt with fixed Euro interest payments at an average rate of 4.6016%1in place of USD interest payments bearing a minimum floating interest rate of 5.0%2 related to the USD$1.75 billion seven-year first lien term loan secured by the Subsidiary on August 1, 2014. The interest and principal payments for the Swap Agreements, which mature in five years, will be made at a Euro/USD FX Rate of 1.1102 on USD notional amount3 of $1.74125 billion.

The Euro/USD spot rate at market close on March 13, 2015 was 1.0465 (simple average).

The Swap Agreements are designed to:

  • improve matching of the currency denomination of the assets and liabilities of Amaya’s Rational Group B2C business, and;
  • hedge4 the exposure of Amaya’s equity holders to movements of both interest rates and the Euro to USD rate of exchange.

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