Grupo Codere restructures debt with creditors & shareholders

Embattled Spanish gambling operator Grupo Codere has reached a financing agreement  with shareholders and creditors that will see a restructuring arrangement for its €1.1 billion  (£850 million) debt.

Spanish business news source stated that bondholder had taken control of Codere operations and assets, making it feasible for the operator to reach new financing terms. The deal was reached with 80.2% of Codere Euro debt holders, consisting of private equity firms and hedge funds.

Under the new terms of operations, Codere’s creditors will swap existing debt for €€675 million in newly issued bonds and a €253 million loan, Codere said in a regulatory filing.

Bondholders also will swap €636 million worth of debt for a 97.78% equity stake in Codere, thus clearing out existing Grupo Codere shareholders.

The new arrangement will see the Martinez Sampedro family founders of Codere purchase back a 20% stake in the operator once structuring is complete. A company statement confirmed that Jose Antonio Martinez Sampedro will remain as Chairman of Codere.