Allwyn International AG secured a €2.15 billion ($2.51 billion) financing package from a consortium of leading global banks, marking a key step in its long-term growth strategy. This agreement includes term loans and a revolving credit facility, all with a five-year maturity, potentially aiding Allwyn in addressing immediate challenges in places like the UK.
Lenders maintained confidence in Allwyn’s prospects with the funds aimed at refinancing existing debt and freeing up capital for expansion initiatives and operational improvements across its lottery businesses. The package involves €400 million ($467 million) in amortising term loans, €900 million ($1.05 billion) in bullet term loans, a €350 million ($408.5 million) revolving credit facility, and a €500 million ($584 million) delayed drawdown facility.
This new facility allows Allwyn to refinance its existing €1.7 billion ($1.98 billion) syndicated loan, which had €1.2 billion ($1.40 billion) drawn. The new terms offer a 150 basis point margin reduction, signaling increased lender confidence in Allwyn’s credit profile. CFO Kenneth Morton commented on the high interest from Allwyn’s existing banking partners, with most increasing their commitments and new banks joining the syndicate.
“These funds will be instrumental in supporting Allwyn’s global growth goals,” said Morton. The company operates in several countries including Austria, the Czech Republic, Greece, Italy, the UK, and Illinois in the US. Allwyn’s model emphasizes long-term contracts with a focus on modernization and responsible, affordable gaming.
The company is well-positioned to achieve its objectives with enhanced financial freedom, which might aid in resolving pressing challenges in the UK. Allwyn recently acknowledged missing a key milestone in its transition as the UK National Lottery’s new operator, attributed to delays in overhauling outdated technical infrastructure that have hindered product development.
Allwyn’s UK National Lottery license runs until 2034 and is a significant part of its European portfolio. The company has committed to a comprehensive revamp of its retail and digital lottery systems, despite the rising costs of such projects. Allwyn’s leadership stressed that such challenges are a part of their broader transition strategy and a necessary step for enduring long-term growth.
As the global gaming sector rapidly evolves due to digital transformation and changing regulatory conditions, Allwyn remains steadfast in its strategy. The latest financing package is expected to help the company enhance its technological foundation, grow responsibly, and maintain effective capital deployment with heightened confidence.
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- Source: SCCGManagement.com