Playtech raises €530M in junk bonds to repay Snaitech debt

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Online gaming and financial trading company Playtech PLC (LON:PTEC) announced late Friday that it has successfully priced €530 million (USD $611 million) in new junk debt.

The 3.75% senior secured five-year notes due 2023 are expected to be assigned a rating of BB by S&P Global Ratings Europe Limited, UK Branch and Ba2 by Moody’s Investors Service Ltd. Offerings rated below BBB- / Baa3 by S&P / Moody’s are considered to be junk bonds.

The net proceeds of the issue of the notes, together with Playtech’s existing cash resources, will be used to repay all amounts outstanding under the company’s bridge facility utilised for the purposes of the acquisition of Snaitech S.p.A., to fund the redemption of the outstanding high-yield bonds issued by Snaitech and to pay for other transaction-related costs and expenses.

Details of the notes will be set out in an Offering Circular. Application will be made to Euonext Dublin (formerly the Irish Stock Exchange) for the notes to be admitted to the Official List of Euronext Dublin and to trading on the Global Exchange Market which is the exchange-regulated market of Euronext Dublin. The Notes are expected to settle on October 12, 2018.

Following the issue of the Notes and the related redemption of Snaitech’s high-yield bonds, Playtech’s only material outstanding borrowings in addition to the new notes will be the €297 million senior convertible bonds due 2019. Playtech also maintains a €250 million revolving credit facility which is currently undrawn.

Banco Santander, S.A., NatWest Markets Plc, UBS Limited, and UniCredit Bank AG are acting as joint bookrunners on the transaction. The Governor and Company of the Bank of Ireland and Goodbody Stockbrokers UC are acting as co-managers on the transaction.

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