SBC News Voice of the Sports Betting Industry
Spanish gambling operator Grupo CIRSA has completed a bond issue worth €500 million over an extended eight year period (2023).
CIRSA governance confirmed that its new bond issue and restructure was led by Deutsche Bank, who have raised the bond capital from European and American investment funds. With CIRSA gaining approval on its new bond issuance, the company will cancel its previous debt security of €450 million set at 8.75% with an attached repayment date of 2018.
The operator’s new eight year bond, will bear an interest rate of 5.88% on the €500 million capital. Spanish business news sources have reported that this will be Grupo CIRSA’s ninth bond placement since 2004.
The issue of the refinanced bond will allow CIRSA to extend its debt maturity profile by decreasing it future interest expenses. Furthermore the operator will use the capital to improve its operating liquidity, as the operator looks to expand its services in South American territories.
The Barcelona based operator reported improved group revenues of 22% to €360 million for full year 2014 and further recorded a net profit of €56 million. CIRSA governance had outlined that the operator’s performance had been driven by expansion in new markets and refinements to its Spanish business division.
Deutsche Bank commented on the CIRSA new bond agreement “The success of this issue is part of the strategy to strengthen its group Cirsa financial structure”
