GVC makes debut in leveraged finance market
GVC Holdings has signed a €320m senior secured term and revolving facility, comprising a €250m term loan and a €70m revolving credit facility.
In October, the Group secured a one year (with options to extend for an additional 6 or 12 months) €250m loan facility from Nomura International, which was used in part to repay the €400m loan provided by Cerberus Business Finance LLP associated with the acquisition of bwin.party digital entertainment.
The Nomura loan provided a short term facility at a reduced overall cost from that associated with the Cerberus Loan.
The group has now successfully secured long-term and increased debt facilities.
The term loan represents GVC’s first entry into the syndicated debt market and was significantly oversubscribed.
The term loan 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.
GVC said: “Given the group’s proven 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.
“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.
Nomura International acted as mandated lead arrangerand sole physical bookrunner of the term loan.
Chief executive Kenneth Alexander said: “The long-term refinancing provides greater visibility and security in terms of our debt facilities.
“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.