CIRSA trims debt as markets wait on Blackstone IPO call

Blackstone has allowed its Spanish gambling asset, CIRSA SA, to sanction a €600m issuance in debt notes aimed at reducing CIRSA’s corporate debt to just below €2.4bn.

The transaction, consisting of senior secured notes due to mature in 2030, carries a significant interest rate, as Spanish media continue to speculate on CIRSA’s forthcoming listing on the Madrid Bolsa.

The €600m raised will be used primarily to refinance CIRSA’s debt maturing in October 2025, estimated at €306m, while €280m will be directly injected into the business to reduce leverage. 

Remaining funds will cover transaction-related expenses, with Deutsche Bank acting as the lead coordinator of CIRSA’s new debt tranche. Following the deal, CIRSA’s net debt will stand at approximately €2.39bn, reducing its leverage ratio from 3.8x to 3.4x EBITDA.

Blackstone’s decision to allow CIRSA to refinance its debt facilities is viewed by Spanish analysts as part of a broader effort to improve investor confidence ahead of a long-awaited IPO, which was delayed in April due to adverse global market conditions.

Despite consecutive delays to the Madrid IPO, Blackstone backs CIRSA’s credentials. In 2024, the Spanish gambling operator reported EBITDA of €699m, an 11% increase on the prior year, alongside €2.15bn in total revenues. 

CIRSA now holds €261m in cash, strengthening its liquidity position ahead of any potential market entry. While an IPO had initially been considered for spring 2025, shifting financial conditions and new fiscal policies in the US delayed activity across global capital markets. 

Blackstone is reported to be cautious about the timing of CIRSA’s IPO, seeking optimal returns from a business it has backed since 2018, having supported the Spanish gambling group through debt refinancing and a return to operating profitability.

Blackstone is now understood to favour a more opportunistic window for listing, with insiders hinting at a dual-track structure involving both new and existing shares, potentially targeting an initial raise of between €700m and €1bn.

Bondholders will allow Blackstone to reclaim the €280m equity injection through a special dividend prior to CIRSA’s flotation, should market conditions support the move. The adjustment of CIRSA’s capital structure has intensified speculation over the timing and format of its stock market debut.

CIRSA is among several assets currently under review by Blackstone, as the private equity fund revises the holdings and investment strategy of its European portfolio.

Last week, it was reported that the fund would call time on its ownership of Clarion Events, the global trade show organiser behind the ICE Barcelona Conference.

According to Reuters International, Blackstone is considering a potential sale of Clarion Events for a target price of over £2bn, aiming to secure a three-fold return on the firm it acquired in 2017 from Providence Equity Partners for £600m.