William Hill has signed a new banking deal, entering into a five-year £550m committed revolving credit facility.
Expiring in November 2015, the new facility immediately replaces the group’s previous forward-start term loans and revolving credit banking facilities, which were due to expire in March 2012. The facility syndicate comprises 11 banks, of which 10 are existing relationship banks and one is a new entrant.
The new facility includes a financial covenant package in line with the previous facility agreement and will complement the group’s existing £300m bond, giving it £850m of committed funds. As of November 26, 2010, drawn debt was £659m and net debt was c£484m on a bank covenant basis.
Overall finance costs are expected to reduce as a result of:
- lower amortisation of arrangement fees and associated costs;
- more cost-effective cash management through the use of a revolving facility; and
- de-designation of the group’s remaining effective interest rate hedging arrangements.
Neil Cooper, group finance director of William Hill, commented: "The new deal] provides the group with a banking facility of longer duration and with an associated reduction in our ongoing ordinary finance costs. This gives the group greater certainty and lower costs in regards to its financing arrangements, further strengthening our balance sheet position."
