Ladbrokes has signed a £1.35bn facility with a group of banks to support the proposed merger with Coral.

Ladbrokes

The facility will be available in three tranches; £600m between 2016 and 2018; £350m in 2019; and £400m in 2020

Existing bank facilities of £55m were cancelled in September and Ladbrokes’ remaining standalone £350m June 2019 bank facilities will be cancelled as a condition precedent to drawing on the new financing.

As a result of the financing, the Gala Coral debt or more than £1bn will not be transferred into the enlarged Ladbrokes Coral group at completion of the merger.

Ian Bull, Ladbrokes CFO, said: "I am pleased that our relationship banks have shown strong support in putting in place a significant size facility at similar pricing to our current facilities. We believe that this facility will provide sufficient liquidity to an enlarged Ladbrokes Coral group following the merger."