Betfred completes £195m refinancing
WARRINGTON-based book maker Betfred has completed a £195m refinancing with its banking partners.
The transaction refinances its existing debt facilities and funds the £55m acquisition of 322 betting shops from the Ladbrokes and Gala Coral Group merger.
The senior debt package has been provided by a four-bank club comprising RBS, Barclays, Lloyds Bank and Yorkshire Bank.
The business recorded revenues of £10.4bn and EBITDA of £56.4m for the financial year ending September 2015.
KPMG’s debt advisory team in Manchester advised the company on the deal. Richard Capper from Hill Dickinson provided legal advice to the business, while the bank club was advised by Matt Christmas of DLA Piper.
Nick Dodd, partner and head of debt advisory at KPMG in the UK, said: “Investment to develop a multi-channel offering and the in-shop experience for customers, particularly through the digitisation of outlets, is a real focus for established bookmakers as they respond to the challenge presented by online competitors.
“We expect to see more firms seek external funding to fuel their expansion and build on strong growth in the industry.”
Founded by Fred and Peter Done in 1967, Betfred employs more than 10,000 staff across over 1,400 licensed betting shops. The business operates across multiple gaming channels; in-shop, online, mobile, telephone and on course.
In 2011, Betfred acquired the state-owned bookmaker Tote as part of a £265m deal that saw the business take on 517 high street outlets and pool betting services at 60 UK racecourses and online.
