Allwyn Locks in €2.15 Billion in Fresh Funding amid Push for Growth

Allwyn International AG has closed a €2.15 billion ($2.51 billion) financing package with a consortium of leading global banks, a significant milestone in the company’s long-term growth strategy. The agreement comprises a combination of term loans and a revolving credit facility, all structured with a five-year maturity. These funds could also help Allwyn tackle some of its immediate challenges in jurisdictions such as the UK.

Lenders Remained Confident in Allwyn’s Prospects

The newly secured funds will primarily contribute toward refinancing current debt and freeing up capital for expansion initiatives and operational improvements across Allwyn’s portfolio of lottery businesses. The €2.15 billion package consists of €400 million ($467 million) amortising term loans, €900 million ($1.05 billion) bullet term loans, a €350 million ($408.5 million) revolving credit facility, and a €500 million ($584 million) delayed drawdown facility. 

With this new facility, Allwyn refinances its existing €1.7 billion ($1.98 billion) syndicated loan, which had €1.2 billion ($1.40 billion) drawn. The revised terms provide a 150 basis point margin reduction, reflecting increased lender confidence in Allwyn’s credit profile. CFO Kenneth Morton noted that the arrangement drew keen interest from Allwyn’s existing banking group, with most lenders increasing their commitments and new banks entering the syndicate.

“I’m delighted with the level of interest that the transaction received. Our broad and diversified access to capital markets continues to allow us to achieve highly attractive pricing and terms across instruments and currencies.”

Kenneth Morton, Allwyn CFO

These extra funds should be instrumental in bolstering Allwyn’s global growth ambitions. The company maintains a presence in countries like Austria, the Czech Republic, Greece, Italy, the UK, and even Illinois in the US. Allwyn’s business model prioritizes long-term contracts with targeted modernization, focusing on responsible, affordable gaming.

The Company Remains Well-Positioned to Achieve Its Goals

Enhanced financial freedom could also help Allwyn resolve some pressing challenges in the UK. The company recently admitted in its annual report that it failed to reach a milestone in its transition plan as the UK National Lottery’s new operator. Although Allwyn did not reveal specifics, its regional issues appear to stem from delays in revamping antiquated technical infrastructure that has constrained product development.

Allwyn’s UK National Lottery license extends until 2034 and is a flagship of its European portfolio. The company has pledged a full-scale revamp of retail and digital lottery systems despite the rising costs such efforts entail. Allwyn’s management emphasized that such growing pains are part of a broader transition drive and an unavoidable step toward sustained long-term growth.
As the global gaming industry rapidly evolves, fueled by digital transformation and shifting regulatory landscapes, Allwyn remains unwavering in its approach. The latest financing package should help the company reinforce its technological core, grow responsibly, and keep a firm hand on capital deployment with increased confidence.