The Intertain Group Limited
TSX : IT

The Intertain Group Limited

December 02, 2015 16:10 ET

Intertain Group Limited Announces Cross Currency Swap Agreement

Currency Swap Transaction Minimizes US Dollar Exposure

TORONTO, ONTARIO--(Marketwired - Dec. 2, 2015) - The Intertain Group Limited ("Intertain" or the "Company") (TSX:IT) today announced that it has entered into a cross currency swap agreement (the "Swap Agreement") in order to minimize the Company's exposure to exchange rate fluctuations between the Great British Pound ("GBP") and the US Dollar ("USD") as cash generated from the Company's operations is largely in GBP while principal and interest payments on the Company's seven-year US$335 million first-lien term loan credit facility ("Term Facility") is in USD.

Under the Swap Agreement, 90% of Intertain's interest and principal payments on its US debt will be hedged until March 2017. Intertain will pay a fixed 7.81% interest in place of floating USD interest payments of Libor plus 6.5% (Libor floor of 1%). The interest and principal payments will be made at a GBP/USD FX rate of 1.5135 on USD notional amount of $293,962,500.

Key benefits to the Swap Agreement include:

  • Ensuring that the currency denomination of the assets and liabilities pertaining to Intertain's business are better matched; and
  • Protecting the Company's equity holders against fluctuations of the GBP to USD rate of exchange.

About The Intertain Group Limited

Intertain is an online gaming company that provides entertainment to a global consumer base. Intertain currently offers bingo and casino to its customers using the InterCasino (www.intercasino.com), Costa (www.costabingo.com), Vera&John (www.verajohn.com), Jackpotjoy (www.jackpotjoy.com), and Botemania (www.botemania.es) brands. For more information about Intertain, please visit www.intertain.com.

Disclaimer in Regards to Forward-Looking Statements and Non-IFRS Financial Measures

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws, including, without limitation, our statements as to guidance regarding total revenues, total adjusted net income and total adjusted diluted income. The purpose of the guidance provided herein is to enhance our disclosure and assist in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The additional key assumptions that the Company has made in connection with the forward-looking statements is that the Company will be able to successfully integrate and realize the benefits of its completed acquisitions. Investors are cautioned not to put undue reliance on forward-looking statements. Events or circumstances that could cause the actual results to differ materially from those in the forward-looking statements include general economic, business and market conditions, foreign exchange rates, governmental and regulatory actions, including changes in law or in the interpretation of laws relating to online gaming. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Additional information identifying risks and uncertainties is contained in Intertain's filings with the Canadian securities regulators, including its annual information form dated March 31, 2015, available at www.sedar.com.

This release contains non-IFRS financial measures and are noted where used. These financial measures are commonly used to compare companies and management believes they are important measures in evaluating Intertain. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, they may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS.

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