Flutter Entertainment, the owner of Paddy Power, Betfair, PokerStars, FOX Bet and a number of other gambling and betting brands, revealed that it is set to save approximately €58 million on an annual basis after a transaction associated with debt refinancing.
In a statement released earlier today, the gambling operator revealed that the aforementioned transaction is set to minimise its effective cost of debt and provide the gambling group with extra liquidity, which would help it become more financially flexible.
As revealed by Flutter Entertainment, the key elements of the debt refinancing and the transaction associated with it include not only a repricing but also upsizing of the already being Term Loan B facility of the Irish gambling group by €1.27 billion. Furthermore, the financial part of the facility that is worth approximately €2.5 billion will be priced at London Interbank Offered Rate (LIBOR) +225 basis points, 0% floor, and an up-front fee to lenders estimated at 25 basis points.
On the other hand, a facility component of about €500 million will be priced at the Euro Interbank Offered Rate (EURIBOR) +250 basis points, 0% floor, and an up-front fee to lenders estimated at 50 basis points.
Flutter Entertainment further noted that a $1 billion imminent repayment of 7% Senior Unsecured Notes on July 21st.
Flutter Entertainment’s Online Gambling Revenue Rises by 42% Year on Year
According to the statement that the Irish gambling giant issued today, an approximately €291.4 million growth in the company’s available liquidity for general corporate objectives is expected by the operator.
Besides, Flutter Entertainment’s weighted average cash cost of debt is expected to decline from 4.2% at the end of the previous year to about 2.5% at the end of 2021 as a result of the transaction. The Irish gambling operator shared that based on the debt position of the group at the end of 2020, it would equate to average annual interest savings of about £50 million a year.
According to reports, the gambling group saw a 33% revenue increase to €1.7 billion over the first financial quarter of this year. The average number of active players on a monthly basis rose by 36% on a global scale. Furthermore, Flutter Entertainment reported a significant 42% year-on-year increase in its online gambling revenue over the first three months of the fiscal year. The online gambling revenue of the group in the UK and Ireland rose by 35%.
As revealed by the company, the brands owned by Flutter Entertainment accounted for just over 50% of all customers at the Cheltenham horse-racing festival that took place in March 2021.
Only a week ago, the Irish gambling giant announced that it has agreed on a sale of Oddschecker Global Media to Bruin Capital. As Casino Guardian reported at the time, the assets transaction has valued Oddschecker at up to £155 million.
- Author
Olivia Cole
