Betfred completes £195m refinancing for shop purchases
UK-based Betfred has completed a £195 million (€233.5 million/$244.7 million) refinancing package to help fund its purchase of shops from Ladbrokes and Gala Coral.
According to Insider Media, the senior debt package has been provided by RBS, Barclays, Lloyds Bank and Yorkshire Bank, with KPMG Debt Advisory to advise.
In October, Ladbrokes and Coral announced that they would sell 365 licensed betting offices to Done Brothers, trading as Betfred, and Stan James to satisfy a demand made by the UK Competition and Markets Authority (CMA).
The regulatory body requested the two companies dispose of hundreds of shops in order to ease concerns over competition in areas across the UK that may have come about as a result of the merger between Ladbrokes and Coral.
Betfred will acquire 322 shops for a cash consideration of £55 million, with Stan James taking on 37 facilities for £500,000.
Speaking about Betfred’s purchase, Nick Dodd, partner and head of debt advisory at KPMG in the UK, said: “Investment to develop a multi-channel offering and the in-shop experience for customers, particularly through the digitisation of outlets, is a real focus for established bookmakers as they respond to the challenge presented by online competitors.
“We expect to see more firms seek external funding to fuel their expansion and build on strong growth in the industry.”
Related article: Ladbrokes and Coral sell betting shops to Betfred, Stan James