Global gaming technology provider The Stars Group increased its U.S. dollar and Euro denominated first lien term loans and revolving credit facility to a total of $2.79 billion.
According to a related 6-K filing, Deutsche Bank served as administrative agent for the transaction. Deutsche Bank Securities, Macquarie Capital, Barclays and BMO Capital Markets acted as joint lead arrangers and joint bookrunners on the first lien facilities.
The transactions among other things:
- Increased the U.S. dollar and Euro denominated first lien term loans to $2.17 billion and €500 million ($624 million), respectively
- Extended the respective maturity dates to April 6, 2025
- Decreased pricing of 50 basis points to LIBOR plus 3.00% and Euribor plus 3.25%, respectively
The Stars Group’s existing revolver was increased from $100 million to $225 million and priced at LIBOR plus 2.75% with a new maturity date of April 6, 2023. The margin for the revolver is subject to leverage-based step-downs.
The Stars Group used approximately $95 million of the increased term loans to fully repay its existing higher-cost U.S. dollar denominated second lien term loan. It intends to use approximately $250 million by the end of this month to fund a portion of its acquisition of an 18% equity interest in CrownBet Holdings and CrownBet’s acquisition of William Hill Australia Holdings.
“The successful completion of this transaction not only underscores the strength of our current business and operations, as well as the continued support of our existing lenders and interest of new lenders, but also reinforces our strategy to enhance the capital structure of The Stars Group,” said Brian Kyle, CFO of The Stars Group.