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Playtech, the gaming software company, has launched senior secured bond notes worth €530 million (US$610.78 million). The bond notes will offer an interest of 3.75 per cent and will become due in 2023.
The notes are likely to receive a rating of BB by the UK branch of Standard and Poor’s Global Ratings Europe and a rating of Ba2 by Moody’s Investors Services. The proceeds from the issuing of the bond notes, combined with the company’s existing cash, will go towards the repayment of outstanding amounts under the bridge facility. They will also be used for the acquisition of Italy-based Snaitech, as well as to cover the expenses associated with the redemption of outstanding high-yield Snaitech-issued bonds and other costs and expenses related to the acquisition.
According to the release, “Details of the Notes will be set out in the Offering Circular. Application will be made to the Irish Stock Exchange plc trading as Euronext Dublin for the Notes to be admitted to the Official List of Euronext Dublin and to trading on the Global Exchange Market, which is the exchange-regulated market of Euronext Dublin. The Notes are expected to settle on 12 October 2018.”
Once all the bond notes are issued and the high-yield bonds are redeemed, Playtech will only have outstanding borrowings of €297 million (US$342.26 million) in senior convertible bonds, which are due next year. Those borrowings are in addition to the new notes. Playtech also has revolving credit of €250 million (US$288.1 million), which the company indicates is currently undrawn.
Source: CalvinAyre
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