2nd Aug 2016 07:49
LONDON (Alliance News) - Online gaming company GVC Holdings PLC on Tuesday said it has entered into an agreement with Nomura International PLC to replace GVC's existing financing arrangements.
Nomura will provide GVC with a EUR250 million unsecured loan, which will go towards the repayment of GVC's EUR400 million term loan facility with Cerberus Business Finance LLC, of which EUR386.5 million remains outstanding.
GVC will repay the balance of the Cerberus loan through its existing cash resources.
The Nomura loan is expected to be drawn down on or around February 1, 2017, and GVC expects to make annual cash interest savings of EUR43.3 million as well as a reduction in financing fees in the 12 months following drawdown.
"Not only does the refinancing significantly reduce our financing costs but it enables us to drive further shareholder value through investment and paves the way for a return to dividend payments in 2017," Chief Executive Kenneth Alexander said in a statement.
"I am also pleased to report that trading has continued positively with July like-for-like revenue per day up 26% on last year and up 31% in constant currency, boosted by the Euro 2016 tournament," he added.
Shares in GVC were trading down 2.3% at 655.00 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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