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Playtech closes €300m senior secured notes offering

| By Marese O'Hagan
Following last week's announcement that Playtech had priced €300m 5.8% senior secured notes due 2028, the gaming technology provider officially closed the deal today (28 June).
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On 21 June, Playtech announced that it had priced the bond offering. It detailed that the net proceeds from the issuance of the new notes would go towards redeeming its outstanding €200m 3.7% senior secured notes, due in 2023.

The net proceeds will also be used to pay accrued interest on the 2023 notes, as well as pay outstanding debt formed as part of its revolving credit facility.

Further transaction-related costs and expenses will also be paid off by the net proceeds.

Issuance of new notes

Following the repayment of any outstanding debts from the 2023 notes, Playtech will only have the 2028 notes and its prior €350m 4.2% senior secured notes due 2026 outstanding.

This comes after Playtech last month reported a “strong” start to 2023, in which it readjusted its earnings before interest, tax, depreciation and amortisation (EBITDA) to be slightly higher than first projected.

The notes offering also speaks to Playtech’s current perceived financial strategy. In February, Playtech made a CA$12.2m investment in NorthStar Gaming. This came as the two entities agreed to extend their existing software and services deal by 10 years.

In March, Playtech purchased a minority equity ownership stake in Hard Rock International and Seminole Gaming’s gaming and sports betting division, Hard Rock Digital, for $85.0m.

Also, in May, Playtech agreed to a new poker deal with Svenska Spel. The deal saw Svenska Spel launch Playtech’s poker offering on its platform.

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