Entain Plc successfully appraised and distributed a new term loan. As part of the corporate financing measures announced in the first half of the year, a new term loan «Term Loan B (USD 1,000 million) maturing in October 2029» was made available.
Entain said it has been cleared to increase the amount to $1 billion from the original $750 million due to strong demand from global lending investors. The deal was necessary to launch a joint venture in Central and Eastern Europe (CEE) with EMMA Capital, which was announced on 11 August.
Further funding will allow the group to complete the acquisition of Dutch online gambling operator BetCity.nl with a new term loan. The deal is expected to close in the fourth quarter.
The availability of this funding will eliminate the need for Entain to use the group’s existing revolving line of credit to complete the acquisition of BetCity.nl. Revenue is retained to maximize Entain’s liquidity and increase balance sheet flexibility.
Entain’s statement read: «The Group intends to enter into hedging arrangements (including cross-currency swaps to effectively convert the entire borrowing into EUR, and fixed/floating interest rate swaps) which should result in an overall fixed cash cost of financing for the New Loan of approximately 6.2% until September 2024.»
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