SBC News The Stars Group sells entire stake in Jackpotjoy Plc for £45 million 

The Stars Group sells entire stake in Jackpotjoy Plc for £45 million 

Toronto TSX online gambling firm The Stars Group has moved to sell its entire stake in London-listed Jackpotjoy Plc.

Issuing a market update, Stars Group has detailed that it has sold 5.6 million shares (7.5% shareholding) at a target price of 802p per share, netting gross proceeds of £45 million.

The transaction was carried out by Stars Group through subsidiary unit Stars Interactive Holding. Stars Group informs that Jackpotjoy will gain no proceeds from its share sale.

This week, Jackpotjoy governance detailed that it had secured a £385 million senior secured loan with further access to a revolving credit facility.

In its update, Jackpotjoy governance informed 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.

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