Paddy Power owner Flutter Entertainment said he would save around £ 50million (€ 58million) a year from a debt refinancing deal.
In a statement released on Monday, the company said the transaction would reduce its effective cost of debt and provide it with additional liquidity, thereby improving its financial flexibility.
The main elements of the transaction include a revaluation and an increase in the size of the group’s existing B term credit facility by $ 1.5 billion (€ 1.27 billion).
In addition, the approximately $ 3 billion (€ 2.5 billion) component of the facility will be priced at LIBOR + 225 basis points, 0pc floor, with an upfront commission to lenders of 25 basis points.
The approximately € 500 million component of the facility will be priced at EURIBOR +250 basis points, 0bp floor, with an upfront commission to lenders of 50 basis points.
There will be a $ 1 billion “imminent repayment” of 7pc Senior Unsecured Notes on July 21.
Flutter has said he will have an increase in available cash of around £ 250million (€ 291.4million) for general business purposes.
Following the transaction, the company estimates that the weighted average cash cost of its debt will drop from 4.2% at the end of 2020 to around 2.5%.
“Based on the group’s debt position at the end of 2020, this will equate to annualized interest savings of around £ 50million per year,” Flutter said.
Flutter Entertainment’s revenue rose 33% to £ 1.48bn (€ 1.7bn) in the first three months of this year, with the average number of monthly gamers rising 36% in the world.
Online gambling revenue grew 42% year-over-year in the three-month period. In Ireland and the UK, online revenues increased by 35%.
The company estimates that the Flutter brands made up just over half of all customers at the Cheltenham Horse Racing Festival in March.