gvc holdings secures 1 4 billion debt syndication ladbrokes coral combinationby Joker 05.03.2018 0 comments
Issuing a market update, FTSE-listed online gambling group GVC Holdings has detailed that it has launched a ‘general syndication’ for its intended debt-financed takeover of Ladbrokes Coral Plc.
Pursuing the larger FTSE100 Ladbrokes Coral enterprise, GVC governance has secured a syndicated ‘Lien Term B’ debt-bond valued at £1.4 billion (comprising £, € and US$ tranches).
Furthermore, through the restructured debt syndication, GVC governance will gain access to a £550 million multi-currency revolving credit facility.
Should GVC clear the final hurdles of its propose £4 billion takeover of Ladbrokes Coral, the online gambling group will use the debt proceeds ‘to satisfy the cash consideration payable to Ladbrokes Coral Shareholders’.
GVC’s accepted bid, at a valuation of £4 billion (207p per share), dependent on the UK government’s FOBTs judgement, seeks to deliver Ladbrokes Coral shareholders a premium of circa 19%.
The takeover deal sees Ladbrokes Coral shareholders awarded a 32.7p in cash per share, 0.141 ordinary GVC shares and a contingent entitlement of up to a further 42.8p should Ladbrokes Coral gain a favourable FOBTs review.
Updating deal stakeholders, GVC will further use refinanced proceeds to clear certain Ladbrokes Coral debt obligations, deal costs and expenses.
The £550 million multi-currency facility will be used to fund certain general corporate initiatives/purposes should GVC and Ladbrokes Coral combine.
This February the GVC-Ladbrokes Coral takeover was forward for review by the UK Competition and Markets Authority (CMA), investigating whether the combination would lead to a “substantial lessening of competition” within the UK gambling sector.