UK-based bingo-led operator, Jackpotjoy has announced the approval of a £388.5m Senior Secured Term and Revolving Credit Facility, comprising a £375m equivalent term loan and a £13.5m revolving credit facility.
The company announced that all the proceeds from the Term Facility will be used to repay the existing first and second lien term loans.
In an update to investors, Jackpotjoy governance explained that the loan facility comprises two finance tranches of £250m and €140m, with an attached maturity of seven years and weighted average interest rate of 4.91% above Libor, which will be stepped down of an additional 0.75% based on future leverage ratios and credit ratings.
Keith Laslop, Jackpotjoy’s Chief Financial Officer, said: “We are thrilled to have secured the new Facilities which clearly demonstrates the growth as well as the 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.”
The news breaks after the release of the company’s Q3 financial results earlier this month. Jacpkpotjoy Group detailed robust growth across its brand portfolio, with the operator confident of achieving its full-year corporate expectations.
Neil Goulden, Acting Executive Chairman commented: “The third quarter has seen a continuation in the strong underlying momentum that we saw during the first six months of 2017, with gaming revenue up 14% and Adjusted EBITDA up 4%.
“I am very proud of the new integrated advertising campaign for our Jackpotjoy brand, which launched in the UK in mid-September. Television personality, Paddy McGuinness, succeeded Barbara Windsor as the new brand ambassador and early signs indicate that the campaign is helping to reinforce our market leadership position in online bingo in the UK.”