Amaya has made an additional payment of US$75m to the former owners of PokerStars, reducing its deferred purchase price obligation to approximately $122.5m.

The operator said that its performance in 2016 had allowed the company to pay down the money owed to Rational Group, having recently agreed a revised deal to spread payment of the deferred purchase price over the course of this year.

"The strong performance of our business allowed us to make another meaningful payment on our pre-existing contractual obligation to the former owners from cash on our balance sheet," Amaya CEO Rafi Ashkenazi said. "We remain confident in our ability to pay the outstanding balance of the deferred payment in a timely manner."

The $197.7m sum was originally due to be paid yesterday (February 1st), before Amaya and the vendors finalised the revised agreement earlier this month.

This also sees the vendors agree not to enforce their right to have Amaya issue equity to finance the balance, with the money owed instead to be paid from unrestricted cash flow on its balance sheet and cash generated from operations.

As part of this deal Amaya also agreed to make a $6m advance payment amounting to three months of non-refundable late payment fees relating to the unpaid balance. 

Any additional late fees that may be incurred, beginning on May 1st this year, will be calculated at the rates set out in the original purchase agreement. This represents a monthly rate equal to 30 day LIBOR plus 85 basis points until August 1st 2017 and then 30 day LIBOR plus 135 basis points thereafter.

Shares in Amaya Inc (Co.Data) (TSX:AYA) closed up 2.86 per cent at CAD$18.36 per share in Toronto Tuesday following news of the additional payment.


GIQ Magazine Digital Edition