Online casino group secures finances

Online gambling group Jackpot Joy plc has secured a GBP 388.5 million Senior Secured Term and Revolving Credit Facility, comprising a GBP 375 million equivalent term loan and a GBP 13.5 million revolving credit facility.

The company says the proceeds of the Term Facility will be used to repay existing first and second lien term loans.

The Term Facility comprises two committed tranches of GBP 250 million and Euro 140 million, which has a maturity of seven years and weighted average interest rate of 4.91 percent above Libor / Euribor, with step downs of an additional 0.75 percent based on future leverage ratios and credit ratings.

The RCF comprises one tranche of GBP 13.5 million and has a maturity of six years and an interest rate of 4.25 percent above Libor, with step downs.

Upon completion of the new facilities (estimated mid-December), the company’s annual cash interest payments will be reduced by approximately a third, or over GBP 9 million in the first year.

Standard & Poor’s and Moody’s are both expected to issue new credit ratings on the company. Standard & Poor’s is expected to maintain its rating at B+, whereas Moody’s is expected to upgrade the Company’s rating to B1.

Keith Laslop, CFO at Jackpot Joy said Monday that the new facilities demonstrate the growth and stability of the company.

“The significant reduction in interest costs, alongside further future rate reductions, allows us to further drive shareholder value through accelerated deleveraging and investment in the long term growth of the business,” he noted.

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