Playtech’s Refinancing to Result in €20M Annualized Savings

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Playtech's Refinancing to Result in €20M Annualized Savings

<p>Playtech (LON: PTEC) announced on Wednesday that it has entered into an amended €277 million revolving credit facility until October 2025. In addition, it received a one-year extension option.</p><p>The amendment came as the gaming software provider was reviewing options to refinance its €530 million senior secured notes and revolving credit facility. Both will originally mature in the fourth quarter of 2023.</p><p>On top of that, the company is serving notice to redeem €330 million of the senior secured notes on 16 November 2022, which are expected to mature in October 2023. It will fund the move using current cash balances.</p><p>The company will have a cash balance of more than €200 million following the early redemption. Its balance sheet will only have a debt obligation of €350 million senior secured notes maturing in 2026.</p><p>According to <a href="https://www.financemagnates.com/tag/playtech/" target="_blank">Playtech</a>, the company would save around €12 million in cash interest savings in 2023 with the refinancing. The total annualized savings will touch €20 million.</p><p>"The combination of Playtech's strong balance sheet and the high cash generation from its operations have enabled the Company to carry out this efficient refinancing, in spite of challenging debt market conditions," said Playtech's Chief Financial Officer, Andrew Smith.</p><p>"We are pleased to have achieved this result, and to have made the significant interest savings that otherwise could have been incurred."</p><p>A Strong Company</p><p>Playtech's <a href="https://www.financemagnates.com/fintech/news/playtechs-revenue-climbs-73-yoy-in-h1-2022/" target="_blank">revenue for the first half of 2022 jumped by 73 percent</a> year-over-year to €792.3 million. Its performance was primarily driven by regulated B2B markets and Snaitech. Furthermore, the EBITDA of the company climbed 64 percent to touch €203.8 million.</p><p>Moreover, the London-listed company completed the <a href="https://www.financemagnates.com/forex/playtech-completes-250m-finalto-sale-to-gopher-investments/" target="_blank">sale of its financial division</a>, Finalto, to Gopher Investments in a $250 million cash deal. However, the takeover deal of Playtech failed: first the shareholders rejected a £2.7 billion takeover bid of Aristocrat Leisure, while TTB Partners <a href="https://www.financemagnates.com/fintech/news/ttb-partners-withdraws-from-playtech-takeover-bidding/" target="_blank">withdrew its interest</a> later citing market conditions.</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Playtech's Refinancing to Result in €20M Annualized Savings