SBC News M&A movements see The Stars Group increase debt capacity

M&A movements see The Stars Group increase debt capacity

Toronto TSX-listed online gambling firm The Stars Group Inc, has secured a repricing of its $/€ ‘first lien’ debt notes, combined with a further extension of its corporate revolving credit facility.

In 2017, the Stars Group governance used approximately $95 million of its available debt capacity to repay its higher-cost $ ‘second lien’ corporate debt notes.

Updating investors, the Toronto TSX-listed enterprise will use circa $250 million to fund its Australian market entry, undertaken through its majority investment in CrownBet.

This March, new Australian subsidiary CrownBet secured the outright acquisition of William Hill Australia assets for AUS $300 million (€185 million), which will be funded by Stars Group.

Restructuring its corporate finances, the Stars Group expands its debt facility to $2.17 billion and €500 million, with its new debt notes set to mature by April 2025.

Further to the announcement, Stars Group governance details that its revolving credit facility has been expanded from $100 million to $225 million

“The successful completion of this transaction not only underscores the strength of our current business and operations, as well as the continued support of our existing lenders and interest of new lenders but also reinforces our strategy to enhance the capital structure of The Stars Group,” said Brian Kyle, Chief Financial Officer of The Stars Group.

“The transactions will help reduce our currency risk, lower our effective interest rate, and allow us to successfully pursue and complete our growth initiatives.”

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