Entain has unveiled a set of refinancing initiatives aimed at extending its debt maturities and cutting interest expenses, expecting to save around £10 million annually on loan interest payments.
The company emphasized that these changes will not affect its current financial commitments, as the overall net debt remains unchanged. The refinancing includes adjustments to two US dollar-denominated Term Loans.
The first loan, totaling $1.1 billion and initially due in March 2027, has had its interest margin reduced by 35 basis points to 225bps over Term SOFR, with its maturity extended to July 2032. This loan was issued at a 99.875 discount.
The second loan, worth $2.218 billion, saw its margin lowered by 50 basis points to the same 225bps over Term SOFR. Its maturity date stays the same, set for October 2029. Entain stated that these steps are part of its broader strategy to optimize its capital structure amid a high-interest environment.
Although the company’s total debt remains unchanged, the lower interest rates are expected to significantly strengthen its financial position.
Despite a 1% drop in Entain’s share price today to £10.07, the stock has been on a strong upward trend since June, when it was trading at £7.51. Back in April, the price was as low as £5.01.
