Global betting behemoth 888 has orchestrated the successful pricing of £400 million senior secured notes. This endeavour is set to be 888 Acquisitions Limited’s first ever issuance into the GBP debt capital market, and should be finalised by May 9.
The company stated that this note offering will be immune from the usual registration conditions stipulated by the US Securities Act of 1933.
In conjunction with this, 888 has declared that it has committed to an extra multicurrency revolving credit facility with an aggregate principal amount of £50 million. The company further stated that this credit facility will have an expiry date of December 31, 2025.
888 has clarified that the funds acquired will be utilised to settle existing debts under the Euro-denominated Term Loan A Facility (TLA). The company anticipates that this action will curtail its net debt by £18 million. This aligns with the company’s ongoing debt reduction strategy, necessitated by the acquisition of William Hill two years prior. For context, 888’s debt soared in light of the near-£2 billion purchase of the British operator.
Apart from this, 888 anticipates a yearly increase in cash interest costs of £4-5 million until 2028 as a result of its recent actions. Additionally, the issuance of new senior secured notes will extend the maturity of a part of 888’s debt amounting to £400 million, which will now be due in 2030 instead of 2028.
Moreover, 888 emphasised that this move will balance the fixed and floating elements of their debt while also making enhancements to the currency structure of the debt, thereby aligning it with the company’s cash generation process.
888 Is On The Path To Expansion
This past April, 888 released its Q1 results, hailing this quarter as a time of transformation. According to the financial update, the company experienced a marginal increase in revenue, instilling hope for prospective outcomes. The establishment is now focusing on growth in Q2.
The theme of transformation extended to the unveiling of a new corporate identity in Q1 when the company announced plans to rename itself as evoke plc. Additionally, the company unveiled its exciting Value Creation Plan and clarion medium-term financial targets.
Per Widerström, the chief executive officer of 888, expressed enthusiasm regarding the results and the company’s future prospects. In a previous announcement, he underscored the company’s confidence in utilising its robust cash generation for deleveraging purposes and delivering profitable expansion.
