(Finance) – Lottomatica announced today that it has successfully completed the pricing of a total amount equal to 900 million euros of bonds in a combination of: 500 million euros in aggregate amount of senior secured bonds maturing in 2030 with a rate of 5.375% at an issue price of 100% and 400 million euros in aggregate amount of senior secured bonds with maturing in 2031 at a variable rate at an issue price of 100%, with a coupon equal to the sum of the three-month EURIBOR rate (subject to a floor of 0%) plus 3.250% per annum which will be exempt from registration requirements of the Securities Act of 1933.
There Closing of the Offer is scheduled for May 29, 2024, subject to the usual closing conditions. The Fixed Rate Notes will mature on June 1, 2030 and the Variable Rate Notes will mature on June 1, 2031.
The company plans to use the proceeds deriving from the Offer, together with its cash availability, in order to finance the full repayment equal to a total amount of 350 million of its senior secured bonds maturing in 2027 with a rate of 9.750% and pay interest, accrued and unpaid, and the related make-whole; finance the full repayment of an aggregate of 550,000,000 of its senior secured floating rate notes due 2028 and pay interest, accrued and unpaid, as well as pay certain fees, costs and expenses incurred in connection with the Offering.
Following the Offer and the use of the proceeds thereof, Lottomatica Group will reduce interest expenses, on a run-rate basis, by approximately 23 million euros per year and will extend the maturity profile of its financial structure, with approximately 70% of the relevant maturities being greater than 5 years.