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.
Join us: 14 – 18 November 2022 MALTA
Being one of the first European countries to regulate the gaming sector, Malta is a hub of global business. The island is an obvious choice for SiGMA’s presence in Europe and a strong foundation for the field’s future. With a plethora of prospects for both investors and entrepreneurs looking to shape the future of this multi-billion dollar business, Malta Week will bring together industry giants among the affiliates, operators, and suppliers of the gaming sector.
Our networking activities, including the extra cultural excursions, dinners, and networking drinks are solely open to Premium and Platinum ticket holders. Choose your ticket type here.