Bookmaker Ladbrokes has announced that it has completed its balance sheet refinancing to extend its existing bank facilities.
Together with the completion of the £100 million (€125 million/$169.5 million) retail bond offer, Ladbrokes said that the refinancing results in an extension of debt maturity on ‘attractive’ terms as well as diversifying its sources of finance.
The announcement comes after the bookmaker last month launched a £100 million 5.125% sterling retail bond with 8.25-year maturity.
Ladbrokes said ‘strong’ investor demand saw the offer oversubscribed and, as a result, closed early.
Proceeds from the bond issue will be used to pay down existing bank debt, which has enabled Ladbrokes to extend the maturity to June 2019 of £350 million of its previous £540 million bank facilities – due to expire in 2016 – and cancel a surplus £135 million of the previous facilities.
The bookmaker confirmed that all financial covenants remain unchanged.
As a result of the actions, the bookmaker’s total debt financing stands at £730 million with an extended maturity profile.
Bank facilities of £55 million have maturity until December 2016, while £225 million of 7.625% existing institutional bond has maturity until March 2017.
In addition, maturity for £350 million in bank facilities stretches to June 2019, while £100 million 5.125% retail bond has maturity until September 2022.
Ian Bull, chief financial officer of Ladbrokes, said: “We are delighted to announce the completion of our re-financing work well ahead of our existing facilities maturing.
“With constructive and strong support from our bank and debt investors, we were able to use both the bank and bond market to enhance the flexibility and length of our debt profile and further strengthen the Ladbrokes' balance sheet.”
