- Entain
- 29 April 2024 08:15:17
Source: Sharecast
The FTSE 100 company said for the dollar-denominated term loan maturing in October 2029, it reduced the existing $1.74bn loan's margin by 75 basis points to 275 basis points, with the removal of the credit adjustment spread of 10 basis points.
Additionally, an extra $500m (£400m) fully fungible add-on was secured, maintaining the revised margin of 275 basis points over term SOFR, and allocated at an original issue discount of 99.875.
Similarly, for the euro-denominated term loan maturing in June 2028, Entain said it reduced the existing €1,030 million loan's margin by 50 basis points to 325 basis points.
An additional €235m (£200m) fully fungible add-on was secured, maintaining the revised margin of 325 basis points over EURIBOR, and allocated at an original issue discount of 99.75.
The add-ons were scheduled to fund in mid-May, and would be swapped to sterling.
Entain said the net proceeds, with £300m designated to immediately repay the bank loan borrowed in the first quarter of 2024, would provide incremental liquidity of about £295m after fees, allowing it to minimise drawings under its revolving credit facility for the rest of the financial year.
The board said the refinancing actions were net debt neutral.
While the net impact of the repricing and add-on did not alter the previously-guided cash interest costs for the current financial year, Entain said it was adopting a more conservative view of interest costs for the balance of the year, reflecting economic forecasts indicating a slower rate of interest rate reduction.
As a result, its revised guidance for cash interest for the 2024 financial year was about £265m.
The profit and loss interest charge, adjusting for IFRS 16 interest and fee amortisation, was anticipated to be about £285m.
At 0808 BST, Entain shares were down 0.8% at 777.92p.
Reporting by Josh White for Sharecast.com.