Codere Online

Codere freezes €100m liquidity raise 

The board of Grupo Codere has informed investors that its plans to initiate additional liquidity financing of €100m have been temporarily postponed.

The decision has been approved by Codere bondholders, who in April permitted corporate governance to pursue new financing options seeking €100m to assist Codere units in overcoming short-term financial pressures due to rising operating costs.

Consequently, bondholders will permit Codere governance to shift the liquidity financing transaction to the second half of year trading

Codere is preparing for a significant leadership transition to support its long-term recovery, with the appointment of a new CEO anticipated in July. The incoming CEO’s appointment follows the departure of former executives Alberto González del Solar and Alejandro Rodino in March.

Having been granted an extension, Codere informed investors that it intends to conclude its liquidity financing round by July 31.

Publishing its Q1 results last week, the Spanish and Latin American gambling group reported a year-on-year revenue increase of 19% to €350m (Q1 2022: €283m), with adjusted EBITDA up 20% to €65m (€52m) and a margin of 19%, 1% higher than the previous year.

The €100m liquidity financing costs will be incorporated as part of Codere’s 2023-2027 business recovery plan, in which corporate governance has committed to return all units to pre-pandemic profit performance by 2025.

Interim CEO Emilio Zaffignani has reemphasised that Codere has no plans to divest any of its South American units, despite its financial pressures.

Zaffignani stated, “with our full commitment to maintaining the portfolio under management, especially with the operations in Argentina, Mexico, and Spain, without any explicit mandate to carry out the asset network.”

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