Codere defers debt note duties until 2023

The creditors of Codere SA have allowed the Spanish gambling group to renegotiate the terms of its senior secured debt notes.

The Bolsa Madrid gambling group has been allowed to defer its debt maturity payments from 2021 to 2023 as part of the firm’s ongoing restructuring arrangements.

Back in July, company creditors had allowed Codere to access a further €250 million credit line, keeping the embattled firm’s South American business units afloat during Covid lockdown.  

The firm’s credit lifeline was extended on the condition that Codere accepted a debt tranche interest of 12.75% – double the rate of interest paid on its long-standing corporate debt of €800 million.

Further terms saw the debt tranche maturity repayments begin from 2021, a condition renegotiated by Codere to 2023 at a lower rate of 10.75%.

Codere confirmed that payment of its debt tranche interest will be maintained by ‘Codere Luxemburg’, a new subsidiary formed to repay interest on 2020 and 2016 revolving credit transactions. 

Codere Luxemburg will fulfil its creditor duties in accordance with the UK Companies Act. overseen by the High Court of Justice of England and Wales 

Publishing its November Q3 trading statement, Codere revealed that 2020 year-to-date net losses stood at €240 million as the distressed gambling group had been affected by the closure of its South American business units and continued severe LatAm currency fluctuations. Codere ‘anticipates’ publishing its full-year 2020 results on Friday 26 February.

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