Playtech closes €350m senior secured bond offering

Playtech has completed the issuance of €350m ($401m) in senior secured notes after pricing the bond offering on 15 September.

The notes carry an annual interest rate of 5.5% and mature on 30 September 2031. They were issued at 100% of their principal amount on 22 September, with interest payable twice yearly on 30 March and 30 September. The first payment is scheduled for March 2027.

Playtech plans to use the net proceeds to redeem all €300m of its outstanding 5.875% senior secured notes due in 2028. The funds will also cover the redemption premium, accrued interest and transaction expenses, with the remaining balance allocated to general corporate purposes.

The existing notes are scheduled to be redeemed on 15 October. Following the transaction, the 2031 notes are expected to represent the gaming technology supplier’s only material outstanding borrowings. Playtech also has a €225m revolving credit facility, which was undrawn when the bond was priced.

The new notes are initially guaranteed by Playtech Services (Cyprus) and Playtech Software Limited. They constitute secured obligations of Playtech, while the associated guarantees are secured obligations of the guarantors.

S&P Global Ratings is expected to assign the notes a BB- rating, while Moody’s is expected to rate them Ba2. The securities have denominations of €100,000, with additional amounts available in multiples of €1,000, and are intended for professional investors and eligible counterparties rather than retail investors.

Playtech has applied for the notes to be admitted to the Official List of Euronext Dublin and traded on its Global Exchange Market. Citigroup, NatWest, Santander and MUFG acted as joint bookrunners, with Allied Irish Banks serving as co-manager.

The bond closing follows Playtech’s first-half results, when revenue from continuing operations increased 10% to €425.1m and adjusted EBITDA rose 77% to €162.5m. The company retained its full-year adjusted EBITDA outlook of more than €270m.