The business is offering €400m worth of notes with an aggregate principal of 7.558%, due in 2027, and €300m at a floating interest rate, due in 2028. These notes are part of the financing plan for the recent £1.95bn acquisition of William Hill’s non-US business by the operator. The financing plan also includes revolving credit facilities and bonds.
The bonds were issued by 888 and underwritten by banking giants JPMorgan and Morgan Stanley. However, these banks faced challenges in selling the bonds to investors due to the ongoing uncertainty surrounding the Gambling Act review. This review is expected to have a significant impact on 888, which has substantial exposure to Great Britain.
The completion of a white paper, which is a crucial next stage of the review, has been delayed by changes in government. The €700m raised through the notes will be used by 888 to repay amounts outstanding under certain acquisition financing arrangements made for the purchase of the William Hill business and to repay some of William Hill’s existing debts.
