Entain ups loan facility following investor demand

Content Team 1 year ago
Entain ups loan facility following investor demand

Entain said it has increased the size of a term loan, which will help finance recent acquisitions, following strong investor demand.

The U.K.-listed company said the term loan was upped from $750 million to $1 billion. 

The proceeds will be used to finance the acquisition of SuperSport, which was announced in August. It will also provide balance sheet flexibility and liquidity. For example, Entain said the purchase of BetCity will no longer need to be financed through drawings on the group’s revolving credit facility. 

Entain said it will enter into hedging arrangements, including cross currency swaps, that will convert the entire loan into euros. It will also enter into fixed/floating interest rate swaps, which should result in a fixed cost of financing of about 6.3 percent until September 2024. 

Last week, company executives said they expect to continue to seek acquisition opportunities and Entain has the balance sheet strength to do so.

CEO Jette Nygaard-Andersen told a conference call with analysts that although high interest rates aren’t helpful, they won’t prohibit further M&A.

The executives said the downturn may even provide more opportunities as competitors with weaker financial strength are unlikely to be able to compete.

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