Intertain Borrows More To Fund Gamesys Earn-out Obligations

Canadian online gambling group raises GBP 160 million in additional debt

Online gambling group Intertain has substantially increased its debt burden after raising debt financing of GBP 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 GBP 70 million incremental first lien term loan and a GBP 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 GBP 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."

Online Casino News Courtesy of Infopowa

About the Author... Total Posts Written: 9,449
Casinomeister

Casinomeister

The man with the plan here at Casinomeister. Bryan Bailey has been running Casinomeister since its launch in June of 1998. He has watched the industry grow from its primeval stage to what it is now. The Meister has attended nearly 100 conferences in the past 20 years and has either been a speaker or a panel moderator for at least 60 events. He has always been an advocate of fairness and reason and is known to like German beer, a good Scotch, and astrophography.
bryan@casinomeister.com

See More Posts