Listed bookmaker Ladbrokes has signed a £1.35 billion facility with a syndicate of relationship banks to provide committed financing for its proposed merger with Coral. The deal means that Coral’s existing debt of £1.4 billion won’t be carried over to the new group.
The new facility has three tranches and will be available for drawing subject to completion of the merger with Coral.
Tranche A – £600m Term Facility – October 2016 and, subject to extension options, January 2018
Tranche B – £400m Revolving Credit Facility – October 2020
Tranche C – £350m Revolving Credit Facility – June 2019
Ladbrokes’ existing £55m December 2016 bank facilities were cancelled in September 2015 and its remaining standalone £350m June 2019 bank facilities will be cancelled as a condition precedent to drawing on the new facility.
The intention is for the £100m September 2022 and the £225m March 2017 Ladbrokes bonds to remain in place following completion of the merger.
As a result of this financing, the Gala Coral debt comprising £315m Senior Secured Note 2018, £275m Secured Note 2019 and £812m Senior Secured Facilities 2018, will not be transferred into the enlarged Ladbrokes Coral group at completion of the merger.
Outgoing CFO Ian Bull commented: “I am pleased that our relationship banks have shown strong support in putting in place a significant size facility at similar pricing to our current facilities. We believe that this facility will provide sufficient liquidity to an enlarged Ladbrokes Coral group following the merger.”