Codere secures €36m credit line to fund Mexican outlook

A filing placed with Spain’s CNMV capital markets commission has revealed that Codere SA has secured terms on two corporate credit lines, obtaining approximately €36 million in working capital to help the Bolsa Madrid gambling group maintain its Mexico and Uruguay business subsidiaries.

The transaction sees Codere governance expand the volume of its existing €90 million revolving credit facility, of which the firm has to date accessed €40 million of funds. Codere’s extended credit facility is further attached to a refinanced €770 million bond, which is set to mature in 2021.

The majority of the working capital will be transferred to Codere’s Mexican business unit, helping improve the scale and future prospects of its established operations in which Codere currently operates 95 arcade properties alongside 90 betting points.

Any remaining funds of the secured transaction will be further utilised to maintain Codere’s Uruguayan business afloat – the group is seeking a buyer for this market portfolio of six arcades, 26 betting points and two racing tracks.

Codere governance continues to underline Mexican growth as a core directive, despite being forced to absorb €15 million losses to its 2019 accounts related primarily to auditing irregularities attached to its Mexican subsidiary.

Bolstering its Mexican prospects, last August Codere announced that it had secured a comprehensive joint venture agreement with Hard Rock International to develop a $1 billion casino resort project in Mexico City.

Appeasing investor concerns following a year of dire trading and auditing blunders, Codere governance confirmed that it had sanctioned a review of its ‘corporate structure’ related to corporate leadership and internal systems and controls.

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