The GBP495 million senior debt facilities backing the secondary buyout of Coral Eurobet is receiving a positive reception from the market, with mandated lead arranger Lehman Brothers reporting no declines so far. Co-arrangers are invited to underwrite GBP45 million for a target final hold of GBP30 million, for 135bp all-in upfront.
The senior debt comprises a GBP200 million seven-year amortising term loan A at 225bp over Libor, a GBP100 million eight-year term loan B at 275bp over Libor, a GBP100 million nine-year term loan C at 325bp over Libor, a GBP80 million seven-year amortising acquisition facility at 225bp and a GBP15 million seven-year bullet revolving credit at 225bp with a 75bp commitment fee.
Prior to the launch, sub-underwriting lead arrangers Bank of Scotland and Royal Bank of Scotland were brought into the deal.
Total debt on the secondary MBO is GBP705 million and, in addition to the GBP495 million senior debt, there is a GBP135 million 10-year mezzanine facility and GBP75 million in PIK notes. Total net debt to EBITDA at closing of 5.6x and senior debt to EBITDA of 4.2x.