UK bookmaker William Hill has signed a new five-year £540m multi-currency revolving credit facility with a syndicate of banks to replace its existing facility which was due to expire in November of next year.
The operator explained that the new facility reflected "current market commercial terms and pricing for a loan of this nature" for a credit of William Hill’s standing.
The new facility expires in May 2019 and replaces the company's existing revolving credit facility, which was due to expire in November 2015.
William Hill said that drawn amounts under the facility attract a variable margin over the London Interbank Offered Rate (LIBOR) based on the ratio of the company’s net debt to earnings before interest, tax, depreciation and amortisation (EBITDA), and comes with a utilisation fee if more than a proportion of the facility is drawn.
The margin under the new facility is expected to be lower than the current margin of the company's existing facility.
Group finance director Neil Cooper said he was pleased to have completed the deal with the support of its relationship banks, and to bring in two new lenders.
“This transaction extends the group's debt maturities strengthening the group's balance sheet position and slightly reduces projected bank financing costs compared to the current facility,” Cooper explained.
The company expects to pay approximately £4.5m of arrangement and participation fees and associated costs, which will be charged to its income statement over the life of the facility.
William Hill will also incur around £2m of one-off non-cash exceptional costs as a result of higher amortisation fees related to the new deal.