GVC Holdings PLC Long-term refinancing (2934Y)
March 02 2017 - 2:00AM
UK Regulatory
TIDMGVC
RNS Number : 2934Y
GVC Holdings PLC
02 March 2017
2 March 2017
GVC Holdings PLC
("GVC" or the "Company" or the "Group")
Long-term refinancing
GVC Holdings PLC (LSE:GVC), the multinational sports betting and
gaming group, is pleased to announce it has signed a EUR320m Senior
Secured Term and Revolving Facility ("the Facility") comprising a
EUR250m term loan (the "Term Loan") and a EUR70m revolving credit
facility("RCF").
In October 2016, the Group secured a one year (with options to
extend for an additional 6 or 12 months) EUR250m loan facility from
Nomura International plc (the "Nomura Loan"), which was used in
part to repay the EUR400m loan provided by Cerberus Business
Finance LLP (the "Cerberus Loan") associated with the acquisition
of bwin.party digital entertainment plc. The Nomura Loan provided a
short term facility at a reduced overall cost from that associated
with the Cerberus Loan.
The Group has now successfully secured long-term and increased
debt facilities. The key terms of the Facility are highlighted in
the table below.
Details of the Term Loan:
Amount committed: EUR250,000,000
Interest rate: 3.25% above Euribor
Euribor floor: 0.0%
Maturity: 6 years
Security: Senior Secured
Details of the RCF:
Amount committed: EUR70,000,000
Interest rate: 2.75% above Euribor on drawn amounts
Euribor floor: 0.0%
Maturity: 5 years
Security: Senior Secured
The Term Loan represents GVC's first entry into the syndicated
debt market and was significantly oversubscribed. The Term Loan
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 (as defined in the Facility).
Given the Group's proven 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. 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.
Nomura International plc ("Nomura") acted as mandated lead
arranger ("MLA") and sole physical bookrunner of the Term Loan.
Nomura, The Governor and the Company of the Bank of Ireland,
Deutsche Bank AG- London Branch and Mediobanca S.p.A. committed to
the Company's RCF and were also appointed MLAs and bookrunners on
the Term Loan.
Kenneth Alexander, CEO, 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."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
- ends -
For further information:
GVC Holdings PLC
Tel: +44 (0)
Kenneth Alexander, Chief Executive 1624 652 559
Paul Miles, Chief Financial
Officer
Nick Batram, Head of Investor Tel: +44 (0)
Relations & Corporate Strategy 20 7337 0110
Media enquiries:
Bell Pottinger
David Rydell, Anna Legge, Laura Tel: +44 (0)
Jaques 20 3772 2500
About GVC Holdings PLC
GVC Holdings PLC is a leading e-gaming operator in both B2C and
B2B markets. GVC has four business segments with a number of
brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming
labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale,
CasinoClub), B2B and non-core assets. GVC acquired bwin.party
digital entertainment plc on 1 February 2016. The Group is
headquartered in the Isle of Man, is a constituent of the FTSE 250
index and has licences in more than 16 countries.
For more information see the Group's website:
www.gvc-plc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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