News Archive

02 March 2017

Long-term refinancing

GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, is pleased to announce it has signed a €320m Senior Secured Term and Revolving Facility ("the Facility") comprising a €250m term loan (the "Term Loan") and a €70m revolving credit facility("RCF").

In October 2016, the Group secured a one year (with options to extend for an additional 6 or 12 months) €250m loan facility from Nomura International plc (the "Nomura Loan"), which was used in part to repay the €400m loan provided by Cerberus Business Finance LLP (the "Cerberus Loan") associated with the acquisition of bwin.party digital entertainment plc. The Nomura Loan provided a short term facility at a reduced overall cost from that associated with the Cerberus Loan.

The Group has now successfully secured long-term and increased debt facilities. The key terms of the Facility are highlighted in the table below.

Details of the Term Loan:
Amount committed: €250,000,000
Interest rate: 3.25% above Euribor
Euribor floor: 0.0%
Maturity: 6 years
Security: Senior Secured

Details of the RCF:
Amount committed: €70,000,000
Interest rate: 2.75% above Euribor on drawn amounts
Euribor floor: 0.0%
Maturity: 5 years
Security: Senior Secured

The Term Loan represents GVC's first entry into the syndicated debt market and was significantly oversubscribed. The Term Loan will benefit from an accordion facility that will allow the incurrence of incremental debt subject to net leverage of not greater than 2.25x the Group's EBITDA (as defined in the Facility). Given the Group's proven track record of creating value through M & A and ongoing industry consolidation, securing long-term finance and access to a broader base of debt investors is an important development for GVC. There are no plans to draw on the RCF at this time.

The annualised percentage cost of the Facility, including interest and fees, is below that of the Nomura loan which will be repaid in full on the drawdown of the Term Loan.

Nomura International plc ("Nomura") acted as mandated lead arranger ("MLA") and sole physical bookrunner of the Term Loan. Nomura, The Governor and the Company of the Bank of Ireland, Deutsche Bank AG- London Branch and Mediobanca S.p.A. committed to the Company's RCF and were also appointed MLAs and bookrunners on the Term Loan.

Kenneth Alexander, CEO, said:

"The long-term refinancing provides greater visibility and security in terms of our debt facilities. To have completed our inaugural institutional loan market financing and to have been significantly oversubscribed is a reflection of the progress made by GVC. Furthermore, access to a broader debt investor base is important given the ongoing consolidation in the gaming industry, particularly given the Group's proven track record of successful M & A."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

Contact:

GVC Holdings PLC  
Kenneth Alexander, Chief Executive
Paul Miles, Chief Financial Officer
Nick Batram, Head of Investor Relations & Corporate Strategy
Tel: +44 (0) 1624 652 559
   
Media enquiries:  
Bell Pottinger  
David Rydell, Anna Legge, Laura Jaques Tel: +44 (0) 20 3772 2500

 

About GVC Holdings PLC

GVC Holdings PLC is a leading e-gaming operator in both B2C and B2B markets. GVC has four business segments with a number of brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), B2B and non-core assets. GVC acquired bwin.party digital entertainment plc on 1 February 2016. The Group is headquartered in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 16 countries.

For more information see the Group's website: www.gvc-plc.com

 

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