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Annual Report & Accounts 2016 - Notes
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93 17. LOANS AND BORROWINGS 17.1 Interest bearing loan On 4 September 2015, the Group entered into an agreement with Cerberus Business Finance LLC for a loan of up to €400m, in order to part-fund the acquisition of bwin.party. Under the terms of the loan, a "Hedging Loan" of up to €20m could be drawn down in advance of the acquisition, in order to fund a hedging arrangement for the conversion of the loan funds into GBP and to pay for initial costs including loan arrangement fees. Accordingly, €20m was drawn down immediately on entering into the contract. The balance of €380m was drawn down on 1 February 2016. This loan was repaid in January 2017 and an alternate bridge financing facility of €250m provided by Nomura International plc was drawn down. This loan itself was then replaced with a long-term institutional loan in March 2017 (see note 30). The acquisition of bwin.party included an institutional loan of €39.4m due to Royal Bank of Scotland Plc. This loan was repaid after the acquisition date in February 2016. Principal €m Interest and fees €m Early repayment option €m Total €m LOAN BALANCE AT 1 JANUARY 2015 - - - - Initial drawdown 20.0 - - 20.0 Initial costs and loan servicing fees paid - (0.8) - (0.8) Interest instalments - (0.6) - (0.6) Effective interest (note 4) - 1.2 - 1.2 LOAN BALANCE AT 31 DECEMBER 2015 20.0 (0.2) - 19.8 Loan drawdown 380.0 - - 380.0 Arising on business combinations 39.4 - - 39.4 Revaluation of loan balances (0.4) - - (0.4) Loan repayment (52.5) - - (52.5) Arrangement fees and loan services fees paid in the prior year - (7.6) - (7.6) Arrangement fees and loan services fees paid in the current year (7.9) - (7.9) Fair value of embedded derivatives - - 7.4 7.4 Interest charged - 46.0 - 46.0 Interest instalments paid - (39.7) - (39.7) Amortisation of loan fees - 23.3 - 23.3 Unwinding of early repayment option - - (4.3) (4.3) LOAN BALANCE AT 31 DECEMBER 2016 386.5 13.9 3.1 403.5 Split between the following as at 31 December 2015: CURRENT LIABILITIES - NON-CURRENT LIABILITIES 19.8 Split between the following as at 31 December 2016: CURRENT LIABILITIES 403.5 NON-CURRENT LIABILITIES - 17.2 Non-interest bearing loan As part of the Group's acquisition of Sportingbet PLC, a credit facility was made available to the Group by William Hill PLC. This loan was fully repaid in February 2016 (31 December 2015: balance of €3.0m).