Intertain Borrows More To Fund Gamesys Earn-out Obligations

INTERTAIN BORROWS MORE TO FUND GAMESYS EARN-OUT OBLIGATIONS

20th December, 2016 at 14:14:36
Source: http://www.azonlinecasinos.com

Canadian online gambling group raises 160 million in additional debt.

Online gambling group Intertain has substantially increased its debt burden after raising debt financing of 160 million in order to help meet its earn-out payment obligations to Gamesys regarding the acquisition in April last year of Jackpot Joy and and Starspins.

In a statement Tuesday Intertain management outlined obligations regarding the payment of fees, costs and expenses related to debt financing and pre-payment, with residual proceeds used to pre-pay existing term loans.

The debt finance comprises a 70 million incremental first lien term loan and a 90 million second lien term loan facility, both of which were arranged by Macquarie Capital (USA) Inc. and Macquarie Capital (Europe) Ltd.

The statement explained that management expects the amount of the earn-out to exceed that of the 150 million pre-payment, with the remaining balance set to be paid out of free cashflow in due course.

Intertain's CEO, Andrew McIver, commented:

"Today's debt financing is an important step forward for Intertain. The financing unlocks the benefit of the advantageous additional non-competition covenants and the amendments to our various operating agreements with the Gamesys group. It also provides certainty to our shareholders and other stakeholders with respect to the funding of our future earn-out obligations."

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