Allwyn, the leading global lottery operator, has entered into a new €1.6bn Senior Facilities Agreement with a syndicate of international banks.
Lenders under the Senior Facilities Agreement have committed to provide funding to Allwyn International a.s. (“Allwyn International”) in an aggregate amount of €1.6bn equivalent split across €441m of amortizing term loans due 2027, €441m of bullet term loans due 2028, a €300m revolving credit facility due 2027 and a £380m multipurpose facility available to be drawn as guarantees or term loans maturing in 2027.
Allwyn International will use the proceeds primarily to (i) refinance existing indebtedness including its €623m syndicated loan (including the €243m revolving credit facility), its £380m bank guarantee facility, and up to €300m of other indebtedness, (ii) provide term financing for up front costs ahead of the start of the UK’s Fourth National Licence in February 2024, and (iii) fund its general corporate purposes including shareholder distributions and acquisitions.
The liabilities under the Senior Facilities Agreement will rank pari passu with the existing debt of Allwyn International and Allwyn Entertainment Financing (UK) plc under the existing intercreditor agreement.
Kenneth Morton, Allwyn CFO, commented:
“I am very pleased by the level of interest that the transaction received despite the challenging capital market environment – all our existing banks have increased their commitments and we are happy to welcome several new lenders into our banking group.
“This financing significantly extends our maturity profile, provides us with a flexible financing solution for the up-front costs of the UK National Lottery license and generates additional liquidity to support our further growth and resilience.
“Following our successful issuance of €600m of bonds earlier in the year, this transaction is a further testament to the strength of the Allwyn credit – as demonstrated by our continued strong financial performance – and our consistent delivery on our organic and inorganic growth strategies.”
UniCredit acted as Global Coordinator. Clifford Chance acted as Allwyn’s legal advisor and Allen & Overy as lenders’ counsel.