888 Continues Deleveraging, Refinances £450M of Debt

International gambling giant 888 announced the successful pricing of £400 million senior secured notes. The move, which will mark 888 Acquisitions Limited’s debut issuance into the GBP debt capital market, is expected to be completed on May 9.

According to 888, the offering of the notes will be exempt from the usual registrations requirements outlined in the US Securities Act of 1933.

In addition to that, 888 announced that it has entered into an additional multicurrency revolving credit facility in aggregate principal amount of £50 million. This credit facility, 888 added, has a maturity date of December 31, 2025.

888 explained that it will use the proceeds to repay existing indebtedness under the Euro-denominated term loan A facility (TLA). 888 said that it expects the move to reduce its net debt by £18 million. This move aligns with the company’s continued deleveraging process following the acquisition of William Hill two years ago. For reference, 888’s indebtedness skyrocketed during the almost £2 billion acquisition of the British operator.

Additionally, 888 said that the move will lead to a cash interest costs increase of £4-5 million a year until 2028. Furthermore, the new senior secured notes will extend the maturity of a portion of 888’s debt with £400 million, now due in 2030 instead of 2028.

888 also pointed out that the arrangement will lead to an improvement in the fixed versus floating debt mix and an improvement in the currency mix of the debt that would align it with the business’ cash generation.

888 Is Poised to Grow

In April, 888 published its Q1 results, lauding the three-month period as a period of change. According to the trading update, the company’s revenue increased slightly, sparking optimism about future results. The operator now targets growth in Q2.

Speaking of change, in Q1 the company unveiled a new corporate identity by announcing its intention to rebrand itself as evoke plc. Of note, the company also unveiled its new Value Creation Plan and clear medium-term financial targets.

Per Widerström, 888’s chief executive officer, was excited about the results and the company’s position in the long-term. In an earlier statement, he said that the company is bullish on using its high cash generation to deleverage and deliver profitable growth.