Playtech Plc has carried out a comprehensive review of options to refinance €530m of senior secured notes and the terms of its revolving credit facility (RCF) – both due to mature in Q4 2023.
The review of debt financing options was outlined to investors in Playtech’s H1 Interim Results announced on 22 September.
The FTSE250 technology group has entered an amended RCF of €277m that will be available to access until October 2025 – and includes options for a further one-year extension.
Citing a “strong balance sheet and cash generation”, Playtech will serve notice on 16 November to redeem €330m of senior secured notes available from the €530m notes and RCF that will mature in Q4 2023.
The transaction will be funded using ‘current cash balances’, in which Playtech expects its €277m RCF to ‘remain untouched’ following its early redemption.
Corporate benefits will result in Playtech netting cash interest savings of approximately €12m in 2023.
Of significance, the tech group’s balance sheet on bond payments will be paid sooner, taking into account expected “annualised savings to €20m.”
“The combination of Playtech’s strong balance sheet and the high cash generation from its operations has enabled the Company to carry out this efficient refinancing, despite challenging debt market conditions.” – read a statement by Group CFO Andrew Smith.
“We are pleased to have achieved this result and to have made the significant interest savings that otherwise could have been incurred.”
Following the early redemption, Playtech will have more than €200m of available cash on its balance sheet. The firm’s only other material debt obligations are €350m in senior secured notes maturing in 2026.