GVC Holdings secures €320 million loan towards ‘long term’ refinancingby Joker 02.03.2017 0 comments
Updating the market, FTSE-listed sports betting group GVC Holdings Plc (GVC) has confirmed that it has secured a further investment of €320 million (£275 million) through a secured ‘term loan’ and ‘revolving credit facility’ (RCF).
GVC governance detailed that its funding compromised of access to a €250 million ‘term loan’ and a €70 million revolving credit facility (RCF).
The loan funding will be used by GVC governance to pay off its one-year €250 million Nomura Capital debt facility, which was used in-part to repay its €400 million loan provided by Cerberus Finance LLP for its £2.3 billion acquisition of bwin.party Entertainment.
At the time, GVC governance had taken the Nomura facility in order to reduce long-term debt costs. Its new he secured loan has been granted at 3.25% above Euribor with a maturity of six years. The RCF is 2.75% above Euribor on drawn amounts with a five-year maturity.
Commenting on the company update Kenneth Alexander, GVC Chief Executive said
“The long-term refinancing provides greater visibility and security in terms of our debt facilities. 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 ongoing consolidation in the gaming industry, particularly given the Group’s proven track record of successful M & A.”