(Fixes typo in headline)
By Claire Ruckin
LONDON, March 2 Online gambling firm GVC
Holdings has raised a €320m leveraged loan, it announced
on Thursday, marking the listed-company’s first foray into the
syndicated debt markets to get cheaper, longer term financing.
The financing will repay a €250m short term unsecured loan
facility from Nomura that was put in place in October 2016 to
repay in part a €400m loan provided by Cerberus Business
Finance, the announcement said.
Cerberus’ loan was originally agreed in September 2015 to
back GVC’s February 2016 acquisition of Bwin.party Digital
Nomura took a lucrative lead role on the €320m syndicated
loan as mandated lead arranger and sole physical bookrunner,
while Bank of Ireland, Deutsche Bank and Mediobanca were MLAs
The loan was syndicated to a targeted group of investors and
was significantly oversubscribed.
It was a welcome relief to cash-rich institutional investors
desperate to put new money to work, having spent a majority of
time this year agreeing to repricings and refinancings of
existing deals amid a lack of event-driven activity, banking
The €320m financing comprised a €250m six-year term loan,
paying 325bp over Euribor with a 0% floor, and a €70m five-year
revolver paying 275bp over Euribor with a 0% floor, the
The term loan, which has an expected rating of mid-to-low
Double B, allocated on Europe’s secondary loan market on Tuesday
at par, the sources said.
The term loan will benefit from an accordion facility that
will enable GVC to raise extra debt, as long as net leverage
remains below 2.25 times Ebitda.
"The long-term refinancing provides greater visibility and
security in terms of our debt facilities," GVC CEO Kenneth
"Furthermore, access to a broader debt investor base is
important given the ongoing consolidation in the gaming
industry, particularly given the Group's proven track record of
Cerberus' loan paid 11.5% over Euribor, with a 1% floor,
while Nomura’s unsecured short term loan paid an initial margin
of 200bp over Euribor with a 0% floor, according to Thomson
Reuters LPC data.
The cost of the new facility is cheaper than Nomura’s short
term loan, the company said.
Headquartered in the Isle of Man, GVC is a constituent of
the FTSE 250 index and has licences in more than 16 countries.
It has a number of brands including sports labels bwin,
Sportingbet and gamebookers and gaming labels partypoker,
partycasino, Foxy Bingo, Gioco Digitale and CasinoClub.
(Editing by Christopher Mangham)