GVC confirms E320m of long-term financing

Betting Business - GVC Holdings financing
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Following its one-year E250m loan facility from Nomura International, GVC Holdings has secured long-term financing to assist future M&A activity.

 

GVC Holdings, a multinational sports betting and gaming group, has managed to secure E320m in long-term financing to assist with future M&A activity.

The latest round of financing comprises a E250m secured-term loan and a E70m revolving credit facility.

The news comes just a few months after the group secured a one-year E250m loan facility from Nomura International, which was used in part to repay the E400m loan provided by Cerberus Business Finance LLP when GVC acquired bwin.party last year. The Nomura Loan provided a short-term facility at a reduced overall cost from that associated with the Cerberus Loan.

Discussing the news, GVC chief executive Kenneth Alexander said that access to increased debt facilities was a necessary part of operating in an increasingly consolidated environment. In the past two years alone, four of the biggest UK bookmakers have merged into two superconglomerates, while GVC itself acquired online gaming operator bwin.party for approximately $1.7bn (E1.6bn) in February last year.

The most recent bout of financing would likely contribute to GVC’s future mergers and acquisitions, 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,” he commented.

“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.”


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