Allwyn secures €1.6bn credit facility to refinance debt and National Lottery costs

Allwyn Entertainment has secured access to €1.6bn funds, having reached a senior facilities agreement with a syndicated group of international banks. 

The transaction was undertaken by Allwyn International (formerly SAZKA Group AS) with lenders agreeing to provide an aggregate €1.6bn facility to the lottery conglomerate.

Terms of the agreement will see the €1.6bn credit facility split into separate debt tranches, priced at €441m of amortizing term loans due 2027, €441m of bullet term loans due 2028, and a €300m revolving credit facility due 2027.

Furthermore, Allwyn will have access to a £380m multipurpose facility available to be drawn as guarantees or term loans maturing in 2027.

Proceedings from the facility will be primarily used to refinance existing ‘indebtedness’ of the group which includes a “623m syndicated loan (including the €243m revolving credit facility), its £380m bank guarantee facility, and up to €300m of other arrears”.

Further to refinancing, the proceeds will be used to cover upfront costs for Allwyn’s takeover of the UK’s Fourth National Lottery contract, scheduled to start in February 2024 and for general corporate purposes. 

UniCredit acted as Global Coordinator, alongside Clifford Chance as Allwyn’s legal advisor with Allen & Overy serving as the lenders’ counsel.

Kenneth Morton, Allwyn CFO, commented: “I am very pleased by the level of interest that the transaction received despite the challenging capital market environment – all our existing banks have increased their commitments and we are happy to welcome several new lenders into our banking group.

“Following our successful issuance of €600m of bonds earlier in the year, this transaction is a further testament to the strength of the Allwyn credit – as demonstrated by our continued strong financial performance – and our consistent delivery on our organic and inorganic growth strategies.”