Sky Bet, Dan Colton

The Stars Group changes corporate structure & debt capacity for Sky Bet acquisition

The Stars Group Inc has moved to restructure its corporate debt facilities, alongside its future operational structure to accommodate its agreed $4.7 billion (€3.9 billion) acquisition of Sky Betting & Gaming (SB&G).

Detailing further insight of its industry-changing acquisition, Stars Group governance is set to pay ‘$3.6 billion cash’ to CVC Capital and Sky Plc for SB&G’s entire asset portfolio.

The remainder of the transaction will be payable via a 38 million ‘new common share issue’, representing approximately 20% of the Stars Group’s enlarged enterprise.

The approved acquisition sees the Toronto TSX firm significantly diversify its revenue make-up beyond its flagship PokerStars brand.

SB&G’s nine core products will be integrated within a new-look The Stars Group Inc, alongside the recently acquired Australian assets of CrownBet and William Hill Australia.

Under the terms of the acquisition, the Stars Group will retain all SB&G’s commercial rights, licensing and marketing arrangements with Sky Plc, including agreements made for the markets of Germany and Italy.

Financing the transaction and its enlarged operations, the Stars Group governance has extended its corporate debt capacity to circa $6.9 billion (€5.7 billion).

The Stars Group restructured debt capacity, consists of $5.1 billion of first lien term loans, combined with $1.4 billion of senior unsecured notes.

Furthermore, the TSX enterprise increases its active revolving credit facilityfrom $225 million to $400 million.

Updating the market, The Stars Group Chief Executive Rafi Ashkenazi and corporate governance will participate in an ‘investor call’ set for Monday 23 April 8.30 am Eastern Time (13:30 UK Time).

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