Amaya amends Rational Group payments plan

nology-based products and services provider, Amaya Inc has confirmed that it will pay its $197.7m balance relating to the deferred purchase price for acquired Rational Group assets right the way through 2017.

Following a review of its financing options, Amaya governance detailed the amendments to its payment plan which was originally due for 1 February 2017.

After evaluating the multiple non-dilutive options available to the company, Amaya will now pay its balance throughout 2017, using its “unrestricted cash” and “cash-flow generated from operations”.

The Toronto TSX-listed company detailed that its staggered payments would be “the least expensive and most flexible financing option at this time as it avoids, among other things, incurring additional term debt, amendment fees and associated costs and expenses”.

Rafi Ashkenazi, Amaya’s Chief Executive comments: “Based on our operations and performance in 2016, we are confident in our ability to repay the balance of the deferred purchase price in a timely manner.

“We believe that our current plan speaks to the strong cash flow generation of our business model and will allow us to continue investing in the success of our business while meeting our pre-existing contractual obligations to the former owners.”

In November last year, Amaya paid $200m of the deferred purchase price, resulting in approximately $2.3m in savings towards the outstanding balance.