Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Entain reprices two term loans, revises interest cost outlook
(Sharecast News) - Betting and gambling giant Entain announced the successful repricing of two of its existing 'Term Loan B' loans on Monday, along with the pricing and allocation of fungible add-ons, in a bid to optimise its financial position. The FTSE 100 company said for the dollar-denominated term loan maturing in October 2029, it reduced the existing $1.74bn loan's margin by 75 basis points to 275 basis points, with the removal of the credit adjustment spread of 10 basis points.
Additionally, an extra $500m (£400m) fully fungible add-on was secured, maintaining the revised margin of 275 basis points over term SOFR, and allocated at an original issue discount of 99.875.
Similarly, for the euro-denominated term loan maturing in June 2028, Entain said it reduced the existing €1,030 million loan's margin by 50 basis points to 325 basis points.
An additional €235m (£200m) fully fungible add-on was secured, maintaining the revised margin of 325 basis points over EURIBOR, and allocated at an original issue discount of 99.75.
The add-ons were scheduled to fund in mid-May, and would be swapped to sterling.
Entain said the net proceeds, with £300m designated to immediately repay the bank loan borrowed in the first quarter of 2024, would provide incremental liquidity of about £295m after fees, allowing it to minimise drawings under its revolving credit facility for the rest of the financial year.
The board said the refinancing actions were net debt neutral.
While the net impact of the repricing and add-on did not alter the previously-guided cash interest costs for the current financial year, Entain said it was adopting a more conservative view of interest costs for the balance of the year, reflecting economic forecasts indicating a slower rate of interest rate reduction.
As a result, its revised guidance for cash interest for the 2024 financial year was about £265m.
The profit and loss interest charge, adjusting for IFRS 16 interest and fee amortisation, was anticipated to be about £285m.
At 0808 BST, Entain shares were down 0.8% at 777.92p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
