Updating the market this morning, FTSE-listed betting operator GVC Holdings (GVC) has informed investors that it has agreed a refinancing deal with Japanese corporate bank Nomura International Plc.
GVC governance has secured a €250 million unsecured loan with Nomura, which will be used to facilitate its existing €400 million long-term loan issued by Cerberus Business Finance.
The operator had entered its €400 million credit line with Cerberus in Q3 2015 to complete its €1.1 billion takeover of bwin.party Entertainment. GVC governance informed that to date €386.5 million remains outstanding on its Cerberus loan tranche.
GVC who this week confirmed that it had been approved its FTSE placement transfer by the UK Listing Authority, would further inform its investors that its new secured loan with Nomura would save the company circa €43 million in the following 12 months.
Kenneth Alexander, GVC Holdings CEO commented on the loan update
“I am delighted that we have delivered on another key objective for 2016. The quality of our lending partner and the competitive rate we have secured is a result of the progress already made by the enlarged GVC. Not only does the refinancing significantly reduce our financing costs but it enables us to drive further shareholder value through investment and paves the way for a return to dividend payments in 2017. We have been pleased to work with Nomura and look forward to working with them in the future”.
The company expects to finalise its loan agreement with Nomura by 31 October 2016.