Codere Group sets sights on LatAm and European markets

Sudhanshu Ranjan October 18, 2024

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Codere Group sets sights on LatAm and European markets

Codere has recently achieved a major milestone in its financial journey by significantly reducing its consolidated net debt to around $70.6 million. This recapitalisation process, which has provided the company with a fresh $65.17 million in new financing, positions Codere for a future of stability, solvency, and growth.

Overview of Codere’s recapitalisation

Codere initiated its recapitalisation process in June 2023 in response to financial pressures and challenges, particularly in Latin American markets like Argentina, which had been hit hard by macroeconomic factors such as currency devaluation. The process was successfully completed by mid-October, with unanimous support from creditors, ensuring that the company would be on a solid financial footing moving forward.

One of the most significant outcomes of Codere’s recapitalisation is the reduction of its net debt to approximately €65 million. With the completion of this process, Codere expects its leverage ratio to be around 0.9 times its adjusted EBITDA for 2023. This represents a major decrease, as Codere’s previous financial structure had left the company with higher debt levels that limited its operational flexibility.

Codere CEO Gonzaga Higuero described the recapitalisation as a decisive success, noting that it guarantees the company’s future financial stability and enables it to pursue its growth objectives. Higuero stated, “This is a guarantee for the future that ensures our financial position and relaunches the company’s ability to achieve growth objectives. We appreciate the trust of our clients, the support of our investors and the commitment of our team, and we are prepared to generate value for all our stakeholders.”

As part of the recapitalisation, Codere secured $65.17 million in new financing. This infusion of capital is critical for fuelling the company’s business plan, helping it to navigate current challenges while also positioning it for future growth. These funds will not only reinforce Codere’s solvency but also provide the necessary liquidity to explore new opportunities.

Codere’s strategy for future expansion

Codere has its sights set on key markets in Latin America, where it already has a significant presence. With the additional capital from its recapitalisation, Codere plans to expand its operations, focusing on regions that offer the greatest growth potential.

In addition to Latin America, Codere is also eyeing opportunities for expansion in Europe. The company’s improved financial position gives it the ability to explore acquisitions or partnerships that can further bolster its presence in the European gaming sector.

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