William Hill to issue £300m bonds to ease debt pressure
William Hill is to issue £300m in corporate bonds to ease pressure on its banking covenants, the second time the British bookmaker has issued a covenant this year.
WILLIAM HILL IS TO issue £300m in corporate bonds to ease pressure on its banking covenants.
The bond issue, planned for 12 November, will extend the bookmakers’ existing facilities due to expire in 2011 by five years, and raise them to £838m.
The extension of its debt profile helped ease debt concerns in the markets surrounding the stock, with the share price up more than 3% at close of play today.
The bond issue is Hill’s second cash call of the year aimed at refinancing its debt. In April, the bookmaker undertook a £350m share issue to restructure £1.2bn of borrowings due to mature in March 2010.
Analyst James Hollins at broker Daniel Stewart Hollins said: “We welcome the refinancing development given its neutral impact on interest payment levels and extension of its 2011 debt maturity by more than five years,” adding that the broker expected solid trading in the UK high street for William Hill, supported by forecast growth in its William Hill Online joint venture with Playtech.
William Hill Online has been shortlisted for Operator of the Year, UK Sports Betting Operator of the Year, Casino Operator of the Year and Bingo Operator of the Year in this year’s EGR Awards. The winner will be announced at the EGR Awards gala dinner, which takes place at London’s Old Billingsgate market on 30 November, the first night of EGR Live, eGaming Review‘s free-to-attend conference and exhibition at the same venue.