Updating the market, London-listed online gambling group Jackpotjoy Plc has confirmed that it has secured a £385 million senior secured loan with additional access to a new revolving credit facility.
Refinancing its organisation, Jackpotjoy governance will gain access to a £375 million senior loan, with a further £13.5 million made available to the operator via a Revolving Credit Facility.
Jackpotjoy governance informs that the proceeds from the loan facility will be used to ‘repay the existing first and second lien term loans’.
Updating investors, the loan facility comprises two finance tranches of £250 million and EUR 140 million, with an attached maturity of seven years and weighted average interest rate of 4.91% above Libor, which will be stepped downs of an additional 0.75% based on future leverage ratios and credit ratings.
Entering new secured loan terms, Jackpotjoy’s new group annual cash interest payments will be reduced by approximately a third, targeting £9 million in savings for its first year of transactions.
Group pro-forma total net leverages (including earn-out obligations) will be 3.40x, in line with the 3.35x adjusted net leverage reported on 30 September 2017.
Keith Laslop, Jackpotjoy Plc Chief Financial Officer, said:“We are thrilled to have secured the new Facilities which clearly demonstrates the growth as well as the stability of our underlying businesses. The significant reduction in interest costs, alongside further future rate reductions, allows us to further drive shareholder value through accelerated deleveraging and investment in the long-term growth of the business.”