The company’s lenders have committed to provide the company with 441m of the total amount through amortising term loans, bullet term loans, and a revolving credit facility. The proceeds of the funding will be used for three principal purposes.
Amortising term loans are one of the types of loans that will be used to provide financing to Allwyn. Bullet term loans are a form of debt where most of the payments are made towards the end of the agreement’s maturity.
300m will be in a revolving credit facility due in 2027 and £380m in a Multipurpose facility available to be drawn as guarantees or term loans maturing in 2027.
The proceeds of the funding will be used for three purposes, according to the operator.
A previous 623m syndicated loan, a £380m bank guarantee facility, and 300m of other debts will be refinanced using the money. The operator intends to use the loan to provide financing for the up-front costs associated with the start of the UK’s fourth National Lottery licence, as well as to fund general corporate costs such as payments to shareholders and funding potential acquisitions.
The acquisition of Allwyn-Camelot is being discussed
In October, the company confirmed that it was in advanced talks to purchase the previous holder of the UK National Lottery licence.
“I am very pleased by the level of interest that the transaction received despite the challenging capital market environment – all our existing banks have increased their commitments and we are happy to welcome several new lenders into our banking group,” said Allwyn CFO Kenneth Morton.
This financing significantly extends our maturity profile, provides us with a flexible financing solution for the up-front costs of the UK National Lottery licence, and provides additional liquidity to support our further growth and resilience.
Following our successful issuance of 600m of bonds earlier in the year, this transaction is a further testament to the strength of the Allwyn credit, as demonstrated by our continued strong financial performance, and our consistent delivery on our organic and inorganic growth strategies.
The fourth UK National Lottery licence has been granted
Allwyn was officially awarded the fourth UK National Lottery licence in September. The operator has been running the lottery since 1994.
The Gambling Commission announced in March that Allwyn was its preferred application for the licence, ahead of the New Lottery Company and Sisal. After a legal challenge against the decision was dropped, the official awarding was delayed.