(Alliance News) - Entain PLC on Monday announced the repricing of two existing Term B loans, which it said will improve liquidity by about GBP295 million.
The Isle of Man-based bookmaker, which owns Ladbrokes and Coral, said the changes applied to a USD term loan worth USD1.74 billion, and a EUR term loan worth EUR1.03 billion.
The USD loan matures in October 2029, and the margin has been reduced by 75 basis points to 275 basis points; the ten-point credit adjustment spread has also been removed.
For the EUR loan, the margin has been reduced by 50 points to 325 basis points.
Entain also announced the allocation of a USD500 million (around GBP400 million) fully fungible add-on for the USD loan, and an additional EUR235 million add-on for the EUR loan, each with the same revised margins.
Entain said the add-ons will fund in mid-May and be swapped to GBP. Of the net proceeds, GBP300 million will be used to immediately repay a bank loan from the first quarter, with the remaining approximate GBP295 million used as incremental liquidity.
Entain said these "net debt neutral" actions therefore improve its liquidity by approximately GBP295 million and extend its debt's maturity dates, by replacing the bank loan due in 2026 with the loans due in 2028 and 2029.
Entain said the re-pricings have not in isolation changed its expectations for cash interest costs. However, it has still revised its 2024 cash interest guidance to about GBP265 million from the GBP255 million anticipated in March.
Entain explained that "with economic forecasts indicating a slower rate of interest rate reduction, we are taking a more conservative view of interest costs for the balance of the year".
Shares in Entain were up 1.1% at 792.40 pence on Monday morning in London.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Entain (ENT)