CIRSA triggers €650m debt sale as Blackstone reviews Spanish options

Grupo CIRSA is set to refinance its business, by issuing a bond sale of new senior secured notes in the Blackstone-owned Spanish heritage gambling group. 

Last week, CIRSA notified markets that it was aiming to raise a target of €650m in funding through its new bond placement.

The new debt will consist of fixed rate and floating-rate bonds set to mature in 2028, with funds allocated to repay CIRSA’s outstanding bonds due in 2023 and 2025.

CIRSA latest refinancing comes less than a year since the firm was allowed to place €425m in a senior debt transaction maturing in 2027.

Corporate governance notified that it had agreed with banks last year to increase an existing credit line to €275m, with options on bond payments which can be extended into late 2026.

As reported by Reuters International, CIRSA has been allowed to refinance its business once more, as outright owner US PE fund Blackstone examines options to exit its Spanish gambling asset – including a potential IPO.

Blackstone acquired CIRSA in 2018 for €2.2bn, and proceeded to reorganise the business and its domestic and international units.

Overcoming 2020’s pandemic impacts, CIRSA has reported consecutive profits in FY2021 and FY2022 of €330m and €552m.

2022 highlights saw CIRSA expand its casino footprint in Morocco, in which it won rights to open a new casino in Tangier. 

Meanwhile, in Europe, CIRSA entered Italy’s online gambling marketplace having finalised its acquisition of licensed operator E-Play24.

CIRSA is currently advancing its global profile across “nine countries, operating 146 casinos, more than 81,000 recreational machines, 78 bingo halls, 241 lounges, nearly 3,000 sports betting points”.