Entain Secures Favorable Repricing on Corporate Debt
Entain has successfully renegotiated the terms of its corporate debt, securing a more favorable financial footing.
This strategic financial maneuver involves the repricing of existing loans and the addition of new debt tranches, which are set to boost the company’s liquidity and operational capabilities.
Strategic Financial Revisions
Entain announced that it has revised the terms of its ‘Term B’ loans, which comprise a significant portion of its $3 billion corporate net debt.
The adjustments include a reduction in the interest margins of these loans, with a $1.74 billion loan now set at 275 basis points, a decrease of 75 basis points, and a €1.03 billion loan reduced by 50 basis points to 325 basis points.
New Debt Tranches and Future Plans
Additionally, Entain has obtained bondholder approval for £600 million of new fungible add-ons.
The company is expected to receive an additional $500 million and €235 million for its dollar and euro-denominated loans respectively, with the help of these add-ons. This will enhance the company’s liquidity.
This financial capacity increase will enable Entain to repay a £300 million bank loan by Q1 2024 and maintain around £295 million in additional liquidity after covering all related expenses.
Entain plans to refinance in a way that will not increase its net debt. This means that cash interest costs for the current financial year will remain as projected. In 2024, Entain expects its cash interest to be around £265 million, with an adjusted profit and loss interest charge of approximately £285 million.
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