Home > Finance > Allwyn secures €335m accordion loan facilities

Allwyn secures €335m accordion loan facilities

| By Robert Fletcher
Lottery operator Allwyn has entered into €335m (£297m/$356m) of accordion loan facilities with a syndicate of international banks.
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Under the arrangement, a group of lenders will provide the Allwyn International business with funds over six-year term loans as accordion facilities under the group’s existing senior facilities agreement.

Allwyn International will use the proceeds to finance the acquisition of the Camelot Lottery Solutions group of companies, which was announced in January, and for general corporate purposes.

The lottery operator said the syndicate includes both existing and new lenders.

“This transaction will help us continue to grow our business, building on our successful €1.6bn syndicated bank financing in November 2022,” Allwyn chief financial officer Kenneth Morton said. “I am grateful to our existing lending partners for their continued support and pleased to welcome the new banks to the group.”

Acquisition activity

The deal to acquire Camelot Lottery Solutions came after Allwyn last year also announced it was in talks to buy Camelot UK Lotteries, with this proposal having since been approved by the Great Britain Gambling Commission.

Next year, Allwyn will assume control of the UK National Lottery from Camelot UK having been awarded the 10-year, fourth UK National Lottery licence in September 2022, officially ending Camelot’s 28-year tenure as operator. 

Allwyn will assume control of operations on 1 February 2024, with Robert Chvátal, currently Allwyn Group chief executive, in January appointed interim CEO of its UK business to drive the transition process.

Other changes at Allwyn include plans to appoint Clare Swindell and Neil Brocklehurst, currently chief financial officer and commercial director, respectively, at Camelot, as co-chief executives to lead Camelot.

Camelot will continue to operate the National Lottery separately from Allwyn UK through to the end of the third licence in January 2024, with Allwyn scheduled to assume control on 1 February next year. 

In addition, Sir Keith Mills is expected to be appointed as the new chair at closing of the transaction, subject to regulatory approvals. At the same time, Camelot will continue to work to assist Allwyn UK on the transition to the fourth lottery licence.

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