Ladbrokes
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Nick Hill

Ladbrokes secure £1.35bn financing for Coral merger

Ladbrokes has signed a £1.35bn facility with a syndicate of relationship banks to provide committed financing for its proposed merger, subject to completion, with Coral, which was announced back in July.

The new facility has three tranches and will be available in regards to the completion of the merger with Coral.

  • Tranche A - £600m Term Facility - October 2016 and, subject to extension options, January 2018
  • Tranche B - £400m Revolving Credit Facility - October 2020
  • Tranche C - £350m Revolving Credit Facility - June 2019

Ladbrokes’ current £55m December 2016 bank facilities were cancelled in September 2015 and its remaining standalone £350m June 2019 bank facilities will be cancelled as a condition before drawing on the new facility.

The aim is for the £100m September 2022 and the £225m March 2017 Ladbrokes bonds to remain in place following the completion of the merger.

As a result of this financing, the Gala Coral debt of £315m Senior Secured Note 2018, £275m Secured Note 2019 and £812m Senior Secured Facilities 2018, will not be transferred into the enlarged Ladbrokes Coral group after the merger.

Ian Bull, CFO, commented: “I am pleased that our relationship banks have shown strong support in putting in place a significant size facility at similar pricing to our current facilities. We believe that this facility will provide sufficient liquidity to an enlarged Ladbrokes Coral group following the merger.”

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