Statement re new banking deal

William Hill Signs New Banking Deal

  23rd May 2014

William Hill PLC (LSE: WMH) (William Hill or the Group) announces that it has signed a new bank loan agreement, entering into a five-year £540m committed multi-currency revolving credit facility with a syndicate of banks. The new facility expires in May 2019 and replaces the Group's existing revolving credit facility, which was due to expire in November 2015.

The new facility reflects current market commercial terms and pricing for a loan of this nature for a credit of William Hill's standing. Drawn amounts under the facility attract a variable margin over LIBOR based on the Group's Net Debt/EBITDA ratio plus an utilisation fee if more than a certain proportion of the facility is drawn. The initial margin under the new facility is expected to be lower than the current margin under the Group's existing facility. Undrawn amounts attract a commitment fee.

The new facility continues the Group's current financial covenant obligations which are for Net Debt/EBITDA to be not more than 3.5 times and for EBITDA/Net Cash Interest to be not less than 3.0 times. The facility is unsecured but the lenders benefit from a guarantee from the principal operating subsidiaries of the Group.

The Group expects to pay c£4.5m of arrangement and participation fees and associated costs, which will be charged to the income statement over the life of the new facility. As a result of entering into this new deal, the Group will incur c£2m of one-off non-cash exceptional costs arising from the accelerated amortisation of the fees related to the replaced deal.

Neil Cooper, Group Finance Director of William Hill, commented:

"We are pleased to have completed this deal both with the support of our relationship banks and with two new lenders to the Group. This transaction extends the Group's debt maturities strengthening the Group's balance sheet position and slightly reduces projected bank financing costs compared to the current facility."

Notes to editors

 William Hill, The Home of Betting, is one of the world's leading betting and gaming companies, employing more than 17,000 people. Founded in 1934, it is now the UK's largest bookmaker with around 2,430 licensed betting offices that provide betting opportunities on a wide range of sporting and non-sporting events, gaming on machines and numbers-based products including lotteries. The Group's Online business (www.williamhill.com) is one of world's leading online betting and gaming businesses, providing customers with the opportunity to access William Hill's products online, through their smartphone or tablet, by telephone and by text services. William Hill US was established in June 2012 and provides land-based and mobile sports betting services in Nevada, and is the exclusive risk manager for the State of Delaware's sports lottery. William Hill Australia is one of the largest online betting businesses in Australia after the Group acquired the Sportingbet Australia business in March 2013 and tomwaterhouse.com in August 2013, two of the leading online corporate bookmakers in Australia, offering sports betting products online, by telephone and via mobile devices. William Hill PLC is listed on the London Stock Exchange and became part of the FTSE100 in May 2013. The Group generates revenues of c£1.5bn a year.