LONDON, November 27, 2017 /PRNewswire/ —
Jackpotjoy plc (the “Company”) (LSE: JPJ), the largest online bingo-led operator in the world, is pleased to announce it has secured a c.£388.5 million Senior Secured Term and Revolving Credit Facility (the “Facilities”), comprising a c.£375 million equivalent term loan (the “Term Facility”) and a £13.5 million revolving credit facility (“RCF”). Proceeds from the Term Facility will be used to repay the existing first and second lien term loans.
The Term Facility comprises two committed tranches of £250 million and €140 million, has a maturity of seven years and weighted average interest rate of 4.91% above Libor / Euribor, with step downs of an additional 0.75% based on future leverage ratios and credit ratings.
The RCF comprises one tranche of £13.5 million and has a maturity of six years and an interest rate of 4.25% above Libor, with step downs.
Upon completion of the new Facilities (estimated mid-December), the Company’s annual cash interest payments will be reduced by approximately a third, or over £9 million in the first year. Pro forma total net leverage (including earn-out obligations) is 3.40x, in line with the 3.35x adjusted net leverage reported at 30 September 2017.
Standard & Poor’s and Moody’s are both expected to issue new credit ratings on the Company. Standard & Poor’s is expected to maintain its rating at B+, whereas Moody’s is expected to upgrade the Company’s rating to B1.
Keith Laslop, Chief Financial Officer, said:
“We are thrilled to have secured the new Facilities which clearly demonstrates the growth as well as stability of our underlying businesses. The significant reduction in interest costs, alongside further future rate reductions, allows us to further drive shareholder value through accelerated deleveraging and investment in the long-term growth of the business.”
Macquarie Corporate Holdings PTY Limited (UK Branch) and Nomura International plc acted as joint arrangers and joint physical bookrunners of the Facilities.
About Jackpotjoy plc
Jackpotjoy plc is the parent company of an online gaming group that provides entertainment to a global consumer base through its subsidiaries. Jackpotjoy plc currently offers bingo and casino games to its customers through its subsidiaries using the Jackpotjoy (http://www.jackpotjoy.com), Starspins (http://www.starspins.com), Botemania (http://www.botemania.es), Vera&John (http://www.verajohn.com), Costa (http://www.costabingo.com) and InterCasino (http://www.intercasino.com ) brands. For more information about Jackpotjoy plc, please visit http://www.jackpotjoyplc.com.
The information contained within this announcement is deemed to constitute inside information as stipulated under the