As international sports betting and gambling company 888 Holdings plc continues its deleveraging process, the board has secured terms to refinance $499 million of senior secured debt notes at 10.75 percent.
888 has also entered an agreement to secure an additional revolving credit facility worth $62.4 million. Terms of the credit facility will expire on Dec. 31, 2025.
As of first quarter trading, 888’s net debt stands at $2.1 billion, reflecting a 5.6x debt to EBITDA ratio. Under its new ‘Value Creation Plan,’ 888 plans to reduce its corporate net debt to below 3.5x by the end of 2026.
On Thursday, wholly-owned subsidiary 888 Acquisitions Limited will issue £400 million debt notes to the GBP capital markets. The proceeds will be used to repay or cancel existing debt attached to senior facilities agreed on June 29, 2022.
888 expects this refinancing to reduce net debt by about $22.4 million. Investors have been informed that cash interest costs will increase by roughly $4.9 million to $6.2 million annually until 2028.
Founded in 1997, 888 Holdings is listed on the London Stock Exchange and operates multiple companies, including 888casino, 888poker and 888sport. In 2022, the company acquired William Hill in a £2.2 billion takeover.
