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888 to pay 700 million euros back to William Hill
888 is going to raise 700 million euros for paying the debts of William Hill.
The money will be raised by issuing bonds connected with the purchase of William Hill’s business outside the United States, regardless of last week’s reports that some banks were having problems with putting its debts to sale.
The company will offer bonds in the amount of 400 million euros with a total principal amount of seven and half percent maturing in five years (2027) plus 300 million euros with a floating interest rate maturing in 2028.
These bonds are included in a broader financing plan as part of the operator’s latest purchase of William Hill’s business outside the United States for 1.95 billion pounds, involving revolving credit lines and bonds as well.
However, there was a slight confusion with the bonds: as the brand issued bonds signed by huge financial companies JPMorgan and Morgan Stanley. Those banks planned to put the bonds to sale for investors, but reportedly showed no interest amid continued uncertainty over the gambling law’s review, which will have a huge effect on 888 because of its heavy exposure to the United Kingdom.
The white paper, the main following phase of the review, was anticipated to be finalized last week, but because of some rearrangements happening in government it was delayed.
888 indicated that 700 million euros will be used to repay a large sum of money, under several purchase finance agreements negotiated, for the acquisition of the gaming company’s operations, as well as to settle William Hill’s own debts.