Jackpotjoy PLC: New Senior Secured Term and Revolving Facility

LONDON, UNITED KINGDOM–(Marketwired – Nov 27, 2017) – Jackpotjoy PLC (LSE: JPJ)
Jackpotjoy plc
LONDON (UK) 27 November 2017 – Jackpotjoy plc (the “Company”) (LSE: JPJ), the largest online bingo-led operator in the world, is pleased to announce it has secured a c.£388.5 million Senior Secured Term and Revolving Credit Facility (the “Facilities”), comprising a c.£375 million equivalent term loan (the “Term Facility”) and a £13.5 million revolving credit facility (“RCF”). Proceeds from the Term Facility will be used to repay the existing first and second lien term loans.
The Term Facility comprises two committed tranches of £250 million and EUR 140 million, has a maturity of seven years and weighted average interest rate of 4.91% above Libor / Euribor, with step downs of an additional 0.75% based on future leverage ratios and credit ratings.
The RCF comprises one tranche of £13.5 million and has a maturity of six years and an interest rate of 4.25% above Libor, with step downs.
Upon completion of the new Facilities (estimated mid-December), the Company’s annual cash interest payments will be reduced by approximately a third, or over £9 million in the first year. Pro forma total net leverage (including earn-out obligations) is 3.40x, in line with the 3.35x adjusted net leverage reported at 30 September 2017.
Standard & Poor’s and Moody’s are both expected to issue new credit ratings on the Company. Standard & Poor’s is expected to maintain its rating at B+, whereas Moody’s is expected to upgrade the Company’s rating to B1.
Keith Laslop, Chief Financial Officer, said:
“We are thrilled to have secured the new Facilities which clearly demonstrates the growth as well as stability of our underlying businesses. The significant reduction in interest costs, alongside further future rate reductions, allows us to further drive shareholder value through accelerated deleveraging and investment in the long term growth of the business.”
Macquarie Corporate Holdings PTY Limited (UK Branch) and Nomura International plc acted as joint arrangers and joint physical bookrunners of the Facilities.
About Jackpotjoy plc
Jackpotjoy plc is the parent company of an online gaming group that provides entertainment to a global consumer base through its subsidiaries. Jackpotjoy plc currently offers bingo and casino games to its customers through its subsidiaries using the Jackpotjoy (www.jackpotjoy.com), Starspins (www.starspins.com), Botemania (www.botemania.es), Vera&John (www.verajohn.com), Costa (www.costabingo.com) and InterCasino (www.intercasino.com) brands. For more information about Jackpotjoy plc, please visit www.jackpotjoyplc.com.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Investor Enquiries
Jackpotjoy plc
Jason Holden, Director of Investor Relations
+44 (0) 7812 142118 / +44 (0) 203 907 4032
Jackpotjoy Group
Amanda Brewer, Vice President of Corporate Communications
+1 416 720-8150
Media Enquiries
James Leviton
Andy Parnis
+44 (0) 207 251 3801
Cautionary Note Regarding Forward-Looking Information
This release contains certain information and statements that may constitute “forward-looking information” within the meaning of applicable securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “projects”, “predicts”, “targets”, “seeks”, “intends”, “anticipates”, “believes” or “is confident of” or the negative of such words or other variations of or synonyms for such words, or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements or developments to be materially different from those anticipated by the Jackpotjoy group (the “Group”) and expressed or implied by the forward-looking statements. Forward-looking information contained in this release includes, but is not limited to, statements with respect to the repayment of the existing first and second lien term loans, the completion of the new Facilities (including the timing thereof) and the Group’s future financial performance. These statements reflect the Group’s current expectations related to future events or its future results, performance, achievements or developments, and future trends affecting the Group. All such statements, other than statements of historical fact, are forward-looking information. Such forward-looking information is based on a number of assumptions which may prove to be incorrect, including, but not limited to, the ability of the Group to secure, maintain and comply with all required licenses, permits and certifications to carry out business in the jurisdictions in which it currently operates or intends to operate; governmental and regulatory actions, including the introduction of new laws or changes in laws (or the interpretation thereof) related to online gaming; general business, economic and market conditions (including market growth rates and the withdrawal of the UK from the European Union); the Group operating in foreign jurisdictions, the competitive environment; the expected growth of the online gaming market and potential new market opportunities; anticipated and unanticipated costs; the protection of the Group’s intellectual property rights; the Group’s ability to successfully integrate and realise the benefits of its completed acquisitions; the amount of expected earn-out payments required to be made; the Group’s continued relationship with the Gamesys group and other third parties; the Group’s ability to service its debt obligations; and the ability of the Group to obtain additional financing, if, as and when required. Such statements could also be materially affected by risks relating to the lack of available and qualified personnel or management; stock market volatility; taxation policies; competition; foreign operations; the Group’s limited operating history; and the Group’s ability to access sufficient capital from internal or external sources. The foregoing risk factors are not intended to represent a complete list of factors that could affect the Group. Additional risk factors are discussed in Jackpotjoy plc’s annual information form dated 29 March 2017. Although Jackpotjoy plc has attempted to identify important factors that could cause actual results, performance, achievements or developments to differ materially from those described in forward-looking statements, there may be other factors that cause actual results, performance, achievements or developments not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results, performance, achievement or developments are likely to differ, and may differ materially, from those expressed in or implied by the forward-looking information contained in this release. Accordingly, readers should not place undue reliance on forward-looking information. While subsequent events and developments may cause the Group’s expectations, estimates and views to change, Jackpotjoy plc does not undertake or assume any obligation to update or revise any forward-looking information, except as required by applicable securities laws. The forward-looking information contained in this release should not be relied upon as representing the Group’s expectations, estimates and views as of any date subsequent to the date of this release. The forward-looking information contained in this release is expressly qualified by this cautionary statement. Investors should not place undue reliance on forward-looking statements as the plans, intentions or expectations upon which they are based might not occur.