Entain borrows $1 billion to finance two new acquisitions
Entain recently increased the size of a requested loan – classified as a “senior B term loan” – from $750 million to $1 billion. The increase was expected to fund two of its major recent acquisitions, thanks to strong investor demand.
The company said the loan was increased due to demand from global investors for credit. The loan is expected to mature in October 2029.
The amount will be used to finance the acquisition of SuperSport – the leading operator in the Croatian market – by Entain, announced in August this year. As part of the deal, Entain acquired a 75% stake in SuperSport for €690 million. The purchase is expected to be completed by the fourth quarter of 2022.
According to Entain, the amount will also be used to “maximize” its liquidity and “provide greater balance sheet flexibility.” In particular, the company said it should help with the acquisition of BetCity, which will no longer require revolving line of credit financing due to the loan.
The total fixed cost of financing the new loan will be 6.2% until September 2024. This excludes the amortization of fees and the initial issue discount.
Entain is one of the largest sports betting and gaming groups in the world, operating online and in retail. In December 2020, the company embarked on a branding process to reflect its ambition to be the global leader in sports betting and gaming entertainment. The group has a comprehensive portfolio of established brands.
With licenses in more than 27 countries, the group employs more than 24,000 people, in 20 offices on five continents, being present in the main markets of the world and offering opportunities to all betting enthusiasts.