Ladbrokes PLC (LON:LAD) today announced the signing of a £1.35 billion facility with a syndicate of relationship banks. The facility is set to provide committed financing for the proposed merger with Coral, initially unveiled on July 24, 2015.
The facility has three tranches and will be available for drawing subject to completion of the merger.
- Tranche A – £600m Term Facility – October 2016 and, subject to extension options, January 2018;
- Tranche B – £400m Revolving Credit Facility – October 2020;
- Tranche C – £350m Revolving Credit Facility – June 2019.
Ladbrokes existing £55m December 2016 bank facilities were cancelled in September 2015 and its remaining standalone £350m June 2019 bank facilities will be cancelled as a condition precedent to drawing on the new facility.
Due to this financing, the Gala Coral debt including £315m Senior Secured Note 2018, £275m Secured Note 2019 and £812m Senior Secured Facilities 2018, will not be transferred into the enlarged Ladbrokes Coral group at completion of the merger.
Ian Bull, CFO, commented:
“I am pleased that our relationship banks have shown strong support in putting in place a significant size facility at similar pricing to our current facilities. We believe that this facility will provide sufficient liquidity to an enlarged Ladbrokes Coral group following the merger.”
Amid the biggest beneficiaries of the merger is Playtech PLC (LON:PTEC), which is about to receive £75 million ($114.9 million) under a marketing deal with Ladbrokes dated March 2013. The receipt of the sum is conditional upon the completion of the merger.
To view the official announcement on the financing completion, click here.