Betfred has successfully refinanced to help fund the purchase of 322 shops for £55m from Ladbrokes Coral as a result of the conditions placed by the Competition and Markets Authority for the latter’s merger.
The senior debt package has been provided by RBS, Barclays, Lloyds Bank and Yorkshire Bank, with KPMG Debt Advisory consulting for the operator.
Betfred refinanced an existing debt package with this banking facility and grants the operator the financial power needed to complete the purchase.
Nicola Barr, Betfred financial director, comments: "It was great to have strong support from the local banking community to support the company in this significant transaction."
Nick Dodd, partner and head of debt advisory at KPMG in the UK, says: "Investment to develop a multi-channel offering and the in-shop experience for customers, particularly through the digitisation of outlets, is a real focus for established bookmakers as they respond to the challenge presented by online competitors.
"We expect to see more firms seek external funding to fuel their expansion and build on strong growth in the industry."