The group noted that, as outlined in its H1 2022 results released last month, it has been engaged in a “comprehensive review of options” to refinance the €530m ($514.3m) senior secured notes and the company’s revolving credit facility (RCF). Both mature in the fourth quarter of 2023.
In a statement, Playtech said it has now entered into an amended €277m RCF until October 2025, with the option of a further one-year extension.
“Given its strong balance sheet and cash generation, Playtech also announces that it is serving notice to redeem at par on 16 November 2022 €330m of the €530m senior secured notes due to mature in October 2023,” Playtech explained.
“This will be funded using current cash balances with the amended RCF expected to remain undrawn following the early redemption. This will result in cash interest savings of approximately €12m in 2023. The balance of the outstanding bond will be repaid at maturity, or sooner, taking the total annualised savings to €20m.
“Following the early redemption, Playtech will have more than €200m of available cash on its balance sheet. Playtech’s only other material debt obligation is the €350m senior secured notes maturing in 2026.”
Playtech CFO Andrew Smith commented: “The combination of Playtech’s strong balance sheet and the high cash generation from its operations has enabled the company to carry out this efficient refinancing, in spite of challenging debt market conditions.
“We are pleased to have achieved this result, and to have made the significant interest savings that otherwise could have been incurred.”
For the six months ended 30 June 2022, Playtech reported revenue of €792.3m, a 73% increase from the prior-year period.
