Lenders have committed to providing financing to Allwyn in the finance sector. Allwyn will receive a total of €441m through amortising term loans due in 2027. Additionally, there will be €441m in bullet term loans due in 2028. Furthermore, there will be a revolving credit facility of €300m due in 2027 and a multipurpose facility of £380m (€436.8m) which can be drawn as guarantees or term loans maturing in 2027.
Allwyn plans to use the funding for three main purposes. Firstly, it will refinance existing debt, which includes a previous €623m syndicated loan, a £380m bank guarantee facility, and €300m of other debts. Secondly, the loan will be used to finance the start-up costs of the UK’s fourth National Lottery licence. Lastly, the funds will be utilized for general corporate expenses, such as shareholder payments and potential acquisitions.
Allwyn has also engaged in acquisition talks, although the specific targets have not been disclosed. In October, Allwyn confirmed advanced discussions to acquire Camelot UK, the former holder of the UK National Lottery licence. The chief financial officer of Allwyn, Kenneth Morton, expressed satisfaction with the level of interest in the transaction, which was a testament to the strength of their credit and their growth strategies. This financing opportunity extends their maturity profile, provides flexibility for the lottery licence start-up costs, and generates liquidity to support further growth.
Allwyn was awarded the fourth UK National Lottery licence in September, ending Camelot’s 28-year tenure as the operator. The decision by the Gambling Commission came after Allwyn was named the preferred applicant in March. Initially, Camelot challenged the decision but later dropped the legal action.
