December 2, 2022 2 min read

Tabcorp Raises A$425M from Private US Placement

Tabcorp has successfully secured additional capital to spearhead its operations through the issuance of a new private placement long-term debt. The company announced in a filing to the Australian Stock Exchange sought to raise additional funds through the placement of notes in the private US market, amounting to a total of A$425 million ($289 million). The notes have been successfully priced, and the filing to the ASX confirmed.

Tabcorp Raises More Funds to Fund Debt, Expand Operations

The debt is issued in two tranches with a weighted average coupon of 7.75% and covers placements of currency equivalent of A$249 million and A$176 million with a maturity date of 7 and 10 years for each tranche respectively. The notes should settle in March 2023 subject to customary closing conditions. Tabcorp will leverage the proceeds from the debt to help repay existing debt and pursue further growth in the wake of Tabcorp’s demerger.

Commenting on this placement and the opportunities therein, Tabcorp CFO Daniel Renshaw said that the newly raised debt was a sign that Tabcorp enjoys investors’ trust. Renshaw added:

This is a testament to our focus on financial strength as we diversify funding sources and extend our debt maturity profile. It will provide us with flexibility to pursue growth and further progress our transformation strategy.

Tabcorp CFO Daniel Renshaw

The news also comes in the wake of Tabcorp reporting its third-quarter results for the financial year 2023. Group-wide revenue at the time was 18.7% on a year-over-year basis with the company managing to pull ahead, although with a caveat as last year’s results were heavily suppressed by the COVID-19 pandemic.

Tabcorp CEO and managing director Adam Rytenskild noted at the time that the results did not account for the release at the time app which the executive believes will contribute additionally to the results moving forward. The company implemented a lottery demerger scheme back in June this year.

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Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.

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