Major Loan Facility Secured By Online Gambling Group

MAJOR LOAN FACILITY SECURED BY ONLINE GAMBLING GROUP

02nd March, 2017 at 09:50:51
Source: http://www.azonlinecasinos.com

GVC gives details on a new Euro 320 million loan facility.

Online gambling group GVC Holdings has announced that it has successfully secured a Euro 320 million Senior Secured Term and Revolving Facility ("the Facility") comprising a Euro 250 million term loan and a Euro 70 million revolving credit facility (RCF).

In October last year GVC secured a one year (with options to extend for an additional 6 or 12 months) Euro 250 million loan facility from Nomura International plc, which was used in part to repay the Euro 400 million loan provided by Cerberus Business Finance LLP for the acquisition of bwin.party digital entertainment plc.

GVC has now successfully secured long-term and increased debt facilities, which it detailed as follows in a statement Thursday:

Details of the Term Loan:

Amount committed: Euro 250,000,000

Interest rate: 3.25% above Euribor

Euribor floor: 0.0%

Maturity: 6 years

Security: Senior Secured

Details of the RCF:

Amount committed: Euro 70,000,000

Interest rate: 2.75% above Euribor on drawn amounts

Euribor floor: 0.0%

Maturity: 5 years

Security: Senior Secured

GVC chief executive Kenneth Alexander says the term loan represents GVC's first entry into the syndicated debt market and was significantly oversubscribed.

It will benefit from an accordion facility that will allow the incurrence of incremental debt subject to net leverage of not greater than 2.25x the Group's EBITDA. Given the group's track record of creating value through M & A and ongoing industry consolidation, securing long-term finance and access to a broader base of debt investors is an important development for GVC, he said, adding that there are no plans to draw on the RCF at this time.

The annualised percentage cost of the facility, including interest and fees, is below that of the Nomura loan which will be repaid in full on the drawdown of the term loan.

"The long-term refinancing provides greater visibility and security in terms of our debt facilities," Alexander said in a statement Thursday.

"To have completed our inaugural institutional loan market financing and to have been significantly oversubscribed is a reflection of the progress made by GVC. Furthermore, access to a broader debt investor base is important given the on-going consolidation in the gaming industry, particularly given the Group's proven track record of successful M & A."

Related News Tags:



« News index »



SPAIN'S ONLINE GAMBLING MARKET HAS A SOUND FUTURE

29th March, 2017 at 19:48:16
Analyst says sector likely to deliver Euro 500 million in Revenues in 2017.

BWIN AWARDS PAN-EUROPEAN ONLINE GAMBLING ADVERTISING ACCOUNT

28th March, 2017 at 19:47:54
BBH Sport wins significant account after a competitive pitch.

TEUFELBERGER APPOINTED CHAIRMAN OF EVERYMATRIX

28th March, 2017 at 11:21:29
Following Euro 4.3 million private strategic investment round.

GVC HOLDINGS POSTS 2016 RESULTS

23rd March, 2017 at 09:52:25
Group NGR tops 9 percent, but bwin acquisition ensures a pre-tax loss of Euro 138.6 million

BWIN BACK GRAND SLAM OF DARTS

14th March, 2017 at 21:48:55
As title sponsor for next two-years.