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Annual Report & Accounts 2016 - Notes to the Company Statements
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Company financ 114 ial statements continued GVC Holdings PLC Annual Report 2016 NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED for the year ended 31 December 2016 8. LOANS AND BORROWINGS 8.1 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. Principal €m Interest and fees carried €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 (0.5) - - (0.5) Loan repayment (52.0) - - (52.0) Arrangement fees and loan services fees paid - (15.6) - (15.6) Fair value of embedded derivatives - - 7.4 7.4 Interest instalments paid - (39.7) - (39.7) Amortisation of loan fees and interest charged - 69.0 - 69.0 Amortisation of early repayment option - - (4.3) (4.3) LOAN BALANCE AT 31 DECEMBER 2016 386.9 13.5 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 - 8.2 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 €3.1m).