Entain activates $1bn loan to speed up closure of M&A deals 

Entain Plc has successfully executed the pricing and allocation of a ‘New Term Loan‘ that will provide the FTSE100 gambling group $1bn in funds available to support its global growth initiatives. 

A corporate financing measure announced by Entain governance during H1 trading, the new term loan has been allocated as a “$1,000m First Lien Term Loan B in USD set to mature in October 2029.”

Entain disclosed that it was allowed to upsize its original transaction from $750m to $1bn having gained strong demand from global credit investors.

Proceeds from the new loan will be used to finance the acquisition of leading Croatian bookmaker SuperSport – a transaction required for Entain to launch its Central and Eastern Europe (CEE) joint-venture with EMMA Capital  – a deal announced on 11 August.

Further financing directives will see the group use the new term loan to finalise its acquisition of Dutch online gambling operator BetCity.nl a deal expected to be completed during Q4.

Use of the loan will see Entain no longer require “drawings on existing group revolving credit facilities” to complete the acquisition of BetCity.nl.

Outstanding proceeds will be kept to “maximise Entain’s liquidity and provide further balance sheet flexibility.

Entain’s statement read: “The Group intends to enter into hedging arrangements (including cross-currency swaps to effectively convert the entire borrowing into EUR, and fixed/floating interest rate swaps) which should result in an overall fixed cash cost of financing for the New Loan of approximately 6.2% until September 2024.”