| LONDON, March 16
LONDON, March 16 Germany’s largest sports
betting group Tipico has managed to secure the largest pricing
reduction in Europe’s leveraged loan market, shaving 300bp off
of the interest, banking sources said.
CVC acquired a majority stake in Tipico last year, backed
with a €645m debt financing raised in May, including a €620m
term loan that paid 550bp over Euribor with a 1% floor,
according to Thomson Reuters LPC data.
Since then, pricing in Europe’s liquid leveraged loan market
has tightened significantly and sponsors have been conducting
repricings, refinancings and dividend recapitalisations across
the board to make portfolio companies more attractive.
However, the 300bp reduction secured by Tipico outstrips the
recent reductions achieved in Europe’s leveraged loan market, as
investors accept increasingly aggressive terms amid a lack of
new deals, in a bid to keep cash invested.
Tipico’s latest financing has increased the term loan by
€80m to €700m and managed to knock 200bp off the interest margin
to 350bp over Euribor and removed the 1% Euribor floor to 0%.
The repricing cuts deeper than initial launch guidance of
The loan is set to allocate shortly on Europe’s secondary
loan market at par.
Morgan Stanley was sole global coordinator, alongside
bookrunners Bank of Ireland, Credit Agricole, Nomura and
“It just shows how much you can do in this market. Maybe
they paid too much when they first raised it, but it is a tricky
credit given the sector. Maybe the market is just stupid,” a
senior loan banker said.
Tipico operates online and mobile portals, as well as more
than 1,000 betting shops.
(Editing by Christopher Mangham)