The governance of UK independent bookmaker Betfred has confirmed that it has completed a £195 million refinancing package. The financing comes as Betfred moves to complete its £55.5 million acquisition of 322 retail betting shops from newly merged FTSE enterprise Ladbrokes Coral.
The bookmaker’s senior debt package has been supported by a four UK banks – RBS, Barclays, Lloyds and Yorkshire Bank with auditor KPMG acting as lead debt advisory for the operator.
The new banking facility refinances an existing package and provides the financial ammo to complete the deal.
Nicola Barr, Financial Director at Betfred, commented on the debt package: “It was great to have strong support from the local banking community to support the company in this significant transaction.”
In October Betfred increased its UK retail betting portfolio to +1500 betting estates by winning the bid for Ladbrokes and Coral shops which had to be put for sale in order for the merger to meet industry competition standards.
Issuing a deal note, Head of Debt at KPMG Nick Dodd commented on the refinancing arrangement: “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.”