Entain said that the loan was increased due to demand from global credit investors. The loan is set to reach maturity in October 2029.
The upsized loan will be used to finance Entain’s acquisition of Croatian market leader SuperSport, which it announced in August this year. As part of the deal, Entain acquired a 75% stake in SuperSport for €690m. This is expected to close in the fourth quarter of 2022.
According to Entain, the loan will also be used to “maximise” its liquidity and “provide further balance sheet flexibility”. In particular, Entain said it should assist with its acquisition of BetCity, which will no longer require funding from Entain’s revolving credit facility due to the loan.
The overall fixed cash cost of financing for the new loan will be 6.2% until September 2024. This excludes amortisation of fees and original issue discount.