19th Jul 2021 08:59
(Alliance News) - Flutter Entertainment PLC on Monday said it has completed a debt refinancing, to expand its loan facilities at a lower cost, as it prepares to repay senior loan notes later this week.
The FTSE 100-listed bookmaker said it has reduced its weighted average cash cost of debt to 2.5%, from 4.2% on December 31, 2020.
Dublin, Ireland-based Flutter said the new agreement offers annualised interest savings of around GBP50 million, based on its debt at the end of 2020.
The refinancing reprices and upsizes its existing Term Loan B facility by USD1.5 billion.
The new facility includes a USD3 billion component priced at Libor plus 225 basis points, with a 0% floor an an up-front lender fee of 25 basis points. Alongside this is a EUR500 million component, priced at Euribor plus 250 basis points, also with a 0% floor and an up-front fee to lenders of 50 basis points.
The betting firm, formed through the merger of Paddy Power and Betfair, said the refinancing will provide a net increase in available liquidity of GBP250 million for general corporate purposes, alongside the pre-established savings.
Flutter's refinancing comes shortly before the repayment of USD1 billion of 7% senior unsecured notes, due on Wednesday.
Shares in Flutter were trading down 2.2% at 11,920.00 pence each in London on Monday morning.
By Scarlett Butler; [email protected]
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