Entain cuts interest costs by £10m through refinancing
Loan repricing and extensions aim to streamline debt structure and improve financial efficiency.
Key points:
– £10m (US$13m) in expected annual interest savings
– Term loans repriced with lower margins and extended maturities
– Actions maintain net debt position while improving long-term cost base
Entain has announced a series of refinancing measures designed to extend its debt maturity profile and lower interest expenses, with an estimated £10m in annual reduction of loan repayment interest.
According to the operator, the adjustments are net debt neutral and will not impact its existing financial obligations. The moves involve repricing and extending two existing US dollar-denominated Term Loans.
The first is a $1.1bn loan previously set to mature in March 2027. Its margin has been reduced by 35 basis points to 225bps over Term SOFR and the maturity has now been pushed out to July 2032. The loan was issued at a discount of 99.875.
The second loan, valued at $2.218bn, has been repriced with a 50 basis point reduction in margin to the same level of 225bps over Term SOFR. Its maturity remains unchanged, set for October 2029.
Good to know: Entain expects total cash interest in FY25 to be around £240m. The latest refinancing should improve this forecast
The operator said the refinancing actions were part of its ongoing efforts to optimise capital structure, particularly in a higher interest rate environment.
While the overall debt level remains steady, the reduction in borrowing costs is seen as a meaningful enhancement to Entain’s financial outlook.
Entain’s share price fell 1% this morning to £10.07 but has been growing sharply since June, when it stood at £7.51. As recently as April, Entain stocks were as low as £5.01.
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