Jackpotjoy has today (Monday) agreed a £388.5m (€434.5m/$518.6m) senior secured term and revolving credit facility.
The arrangement includes a £375m equivalent term loan and a £13.5m revolving credit facility, with proceeds from the term facility being used to repay existing first and second lien term loans.
The term facility comprises two committed tranches of £250m and €140m, has a maturity of seven years and weighted average interest rate of 4.91% above Libor / Euribor, with step downs of an additional 0.75% based on future leverage ratios and credit ratings.
Meanwhile, the revolving credit facility features one tranche of £13.5m, with a maturity of six years and an interest rate of 4.25% above Libor, also with step downs.
Jackpotjoy said the new facilities should be complete by mid-December, at which point its annual cash interest payments will be reduced by approximately a third, or more than £9m in the first year.
Keith Laslop, chief financial officer at Jackpotjoy, added: “We are thrilled to have secured the new facilities which clearly demonstrates the growth as well as stability of our underlying businesses.
“The significant reduction in interest costs, alongside further future rate reductions, allows us to further drive shareholder value through accelerated deleveraging and investment in the long-term growth of the business.”
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