Major loan facility secured by online gambling group

Online gambling group GVC Holdings has announced that it has successfully secured a Euro 320 million Senior Secured Term and Revolving Facility (“the Facility”) comprising a Euro 250 million term loan and a Euro 70 million revolving credit facility (RCF).

In October last year GVC secured a one year (with options to extend for an additional 6 or 12 months) Euro 250 million loan facility from Nomura International plc, which was used in part to repay the Euro 400 million loan provided by Cerberus Business Finance LLP for the acquisition of bwin.party digital entertainment plc.

GVC has now successfully secured long-term and increased debt facilities, which it detailed as follows in a statement Thursday:

Details of the Term Loan:

Amount committed: Euro 250,000,000
Interest rate: 3.25 percent above Euribor
Euribor floor: 0.0%
Maturity: 6 years
Security: Senior Secured

Details of the RCF:

Amount committed: Euro 70,000,000
Interest rate: 2.75 percent above Euribor on drawn amounts
Euribor floor: 0.0%
Maturity: 5 years
Security: Senior Secured

GVC chief executive Kenneth Alexander says the term loan represents GVC’s first entry into the syndicated debt market and was significantly oversubscribed.

It will benefit from an accordion facility that will allow the incurrence of incremental debt subject to net leverage of not greater than 2.25x the Group’s EBITDA. Given the group’s track record of creating value through M & A and ongoing industry consolidation, securing long-term finance and access to a broader base of debt investors is an important development for GVC, he said, adding that there are no plans to draw on the RCF at this time.

The annualised percentage cost of the facility, including interest and fees, is below that of the Nomura loan which will be repaid in full on the drawdown of the term loan.

“The long-term refinancing provides greater visibility and security in terms of our debt facilities,” Alexander said in a statement Thursday.

“To have completed our inaugural institutional loan market financing and to have been significantly oversubscribed is a reflection of the progress made by GVC. Furthermore, access to a broader debt investor base is important given the ongoing consolidation in the gaming industry, particularly given the Group’s proven track record of successful M & A.”

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