Entain agrees upsized $1bn loan to finance acquisition of SuperSport
Entain announces the pricing and allocation of a $1,000m First Lien Term Loan B in USD the New Loan, with maturity in October 2029.
The New Loan was upsized from $750m to $1,000m following strong demand from global credit investors.
The proceeds of the New Loan will be used to finance the acquisition of SuperSport (announced on 11 August 2022 and expected to complete during Q4), by Entain CEE, the new venture being formed by Entain and EMMA Capital; and to maximise Entain’s liquidity and provide further balance sheet flexibility. In particular, the acquisition of BetCity announced on 14 June 2022 and expected to complete during Q4 will no longer require drawings on the Group’s revolving credit facility.
The New Loan was priced at Term SOFR1 + credit adjustment spread of 10 bps + margin of 350 bps2 and was allocated at 97.5. The Group intends to enter into hedging arrangements (including cross-currency swaps to effectively convert the entire borrowing into EUR, and fixed/floating interest rate swaps) which should result in an overall fixed cash cost of financing for the New Loan of approximately 6.2%.