CVC Capital to fund Sky Bet acquisition with £390m in loans

skybet

Equity and investment firm CVC Capital Partners, are set to take a £390 million loan in order to finalise its £800 acquisition of Sky Bet enterprises from BskyB.

Under the terms of purchase which were agreed on 4 December 2014, CVC Capital will pay BskyB £600 million in cash and a further £120 million in contingent payments. BskyB will retain an equity stake of 20% in the Sky Bet.

CVC partners will look to finalise the acquisition within the first three months of 2015.

Business news source Reuters confirmed that investment bank Goldman Sachs is expected to lead the debt financing through institutional investors. The bank has set up an investment meeting for CVC Capital on 12 January.

The financing will compromise of £340 million pounds in first lien loans, with CVC Capital offered a further £50 million in reserve credit. A reported 5.25x leverage has been set on the loan deal.

Sky Bet, the title sponsor of English soccer’s Football League, generated profit before tax of £50 pounds in the year to June 30, 2014, on revenues of £182 million. Founded in 2001, the company operates sports betting and gaming sites in the growing online market.

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