Stars Group, the Canadian gaming technology supplier, has announced the successful increase, re-pricing and extension of its US dollar and Euro denominated first lien term loans and revolving credit facility and amended and restated its applicable first lien term loan credit agreement.
The group used approximately $95m of the increased term loans to fully repay its existing higher-cost US dollar denominated second lien term loan and intends to use approximately $250m by the end of this month to fund a portion of the previously announced acquisition of an additional 18% equity interest in CrownBet Holdings Pty Limited and CrownBet’s acquisition of William Hill Australia Holdings Pty Ltd.
The transactions included, among other things, an increase in the US dollar and Euro denominated first lien term loans to $2.17bn and €500m, respectively, an extension of the respective maturity dates to April 6, 2025, and a decrease in pricing of 50 basis points to LIBOR plus 3% and Euribor plus 3.25%, respectively. The Stars Group’s existing revolving credit facility was also increased from $100m to $225m and priced at LIBOR plus 2.75% with a new maturity date of April 6, 2023. The margin for the revolving credit facility is subject to leverage-based step-downs.
The Stars Group and the lenders also amended the credit agreement for its first lien term loans to, among other things, reflect the foregoing transactions and add certain operational and financial flexibility.
“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, Chief Financial Officer of The Stars Group. “The transactions will help reduce our currency risk, lower our effective interest rate, and allow us to successfully pursue and complete our growth initiatives.”