Listed bookmaker Ladbrokes has signed a £1.35 billion ($2.07 billion) facility with a syndicate of relationship banks to provide committed financing for its proposed merger with Coral. The deal means that Coral’s existing debt of £1.4 billion will not be carried over to the new group.
The new facility has three tranches and will be available for drawing subject to completion of the merger with Coral.
Ladbrokes’ existing £55 million December 2016 bank facilities were canceled in September 2015 and its remaining standalone £350 million June 2019 bank facilities will be canceled as a condition precedent to drawing on the new facility.
The intention is for the £100 million September 2022 and the £225 million March 2017 Ladbrokes bonds to remain in place following completion of the merger.
As a result of this financing, the Gala Coral debt comprising £315 million Senior Secured Note 2018, £275 million Secured Note 2019 and £812 million Senior Secured Facilities 2018, will not be transferred into the enlarged Ladbrokes Coral group at completion of the merger.