Amaya Substantiates Cross-Currency Trade Deal Made By Subsidiary

Amaya’s subsidiary’s swap agreement will mean a protection to exposure of Amaya’s equity holders to movements of both interest rates and the Euro to USD rate of exchange.

Amaya Gaming Online, who operates under EU gambling laws and has a line up of well-known gambling companies such as PokerStars, has recently made public that one of its subsidiaries is finalizing a ‘cross-currency swap agreement’. The aim of this deal is to decrease interest payments on current debts. It also hopes to stabilize the effect of the Euro to US dollar exchange rate.

Amaya said in its confirmation of the deal that the arrangement would allow its subsidiary to create a mock ‘euro-denominated debt with fixed euro interest payments at an average rate of 4.6016%’. The synthetic approach is to replace the US dollar interest payments hauling a minimum floating interest rate of 5%. Amaya’s subsidiaries organize online poker games and tournaments and live poker competitions.

Amaya owns gaming and related consumer businesses and brands

The online gaming company said the floating interest rate is in connection to the $1.75 billion 7-year first lien term loan acquired by the subsidiary on August 1, 2014. Amaya explained that the interest and principal payments which will bear fruit in 2020, will be made at a ‘euro/US dollar foreign exchange rate of 1.1102’.

Amaya also pointed out that the agreements have been set up to “improve matching of the currency denomination of the assets and liabilities of Amaya”. Amaya’s companies make up the largest online poker business in the world, including EU poker rooms in major casinos. They organize poker programming created for television and online audiences as well as tournaments and poker gaming worldwide.