UK independent bookmaker Betfred’s governance has confirmed that is has officially completed a £195 million refinancing package.
The financing comes as Betfred moved to complete its £55.5 million acquisition of 322 retail betting shops from newly merged FTSE enterprise, Ladbrokes Coral.
The bookmaker’s senior debt package has been supported by four UK banks; RBS, Barclays, Lloyds, and Yorkshire Bank, with auditor KPMG acting as lead debt advisory for the operator.
The new banking facility refinances an already existing package and provides the financial ammo to complete the deal.
Commenting on the refinancing package, Financial Director at Betfred, Nicola Barr, said: “It was great to have strong support from the local banking community to support the company in this significant transaction.”
By winning the UK Competition and Markets Authority (UK CMA) bid for Ladbrokes and Coral shops back in October, which had to be put for sale in order to meet industry competition standards, Betfred increased its UK retail betting portfolio to +1500 betting estates.
KPMG Head of Debt Nick Dodd issued a deal note commenting on the refinancing package arrangement: “Investment to develop a multi-channel offering and the in-shop experience for customers, particularly through the digitisation of outlets, is a real focus for established bookmakers as they respond to the challenge presented by online competitors.
“We expect to see more firms seek external funding to fuel their expansion and build on strong growth in the industry.”