19 October 2022
("Entain" or the "Group")
Successful pricing and allocation of new Term Loan following strong global demand
Entain plc (LSE: ENT), the global sports betting, gaming and interactive entertainment group, today announces the pricing and allocation of a $1,000m First Lien Term Loan B in USD ("the New Loan"), with maturity in October 2029.
The New Loan was upsized from $750m to $1,000m following strong demand from global credit investors. The proceeds of the New Loan will be used:-
- to finance the acquisition of SuperSport (announced on 11 August 2022and expected to complete during Q4), by Entain CEE, the new venture being formed by Entain and EMMA Capital; and
- to maximise Entain's liquidity and provide further balance sheet flexibility. In particular, the acquisition of BetCity (announced on 14 June 2022and expected to complete during Q4) will no longer require drawings on the Group's revolving credit facility.
The New Loan was priced at Term SOFR1 + credit adjustment spread of 10 bps + margin of 350 bps2 and was allocated at 97.5. 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%3 until September 2024.
The New Loan is expected to fund by the end of October.
(1) Secured Overnight Financing Rate (SOFR), subject to a 0.5% floor
(2) +/- 25bps if Leverage as defined in the Senior Facilities Agreement dated 7 July 2021 is greater than 3x / less than 2x
(3) Excludes amortisation of fees and original issue discount, which should equate to 0.5% p.a.
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About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet and Sports Interaction; Gaming Brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK, operating in over 40 regulated or regulating territories. Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group's website: www.entaingroup.com