Entain launches £400 million equivalent U.S. and euro term loans

By Sara Rosenberg

New York, June 20 – Entain plc was scheduled to hold a lender call at 11 a.m. ET on Tuesday to launch £400 million equivalent of senior secured covenant-lite U.S. and euro term loans (Ba1/BB/BB+), according to a market source. The tranche split is still to be determined.

The U.S. piece is a fungible add-on to the company’s existing U.S. term loan B-2 due October 2029 talked with an original issue discount of 98 to 98.5, and the euro piece is a fungible add-on to the company’s existing euro term loan B due June 2028 talked with an original issue discount of 97.5 to 98, the source said.

Pricing on the U.S. add-on is SOFR+10 basis points CSA plus 350 bps with a 0.5% floor, and pricing on the euro add-on is Euribor plus 375 bps with a 0% floor.

Like the existing loans, the U.S. add-on has 101 soft call protection until October 2023 and the euro add-on has 101 soft call protection until January 2024.

Morgan Stanley Senior Funding Inc. is the sole physical bookrunner on the U.S. loan, and Morgan Stanley and NatWest are joint physical bookrunners on the euro loan. BofA Securities Inc., Barclays, Deutsche Bank Securities Inc., Lloyds Bank, Mediobanca and Santander are joint bookrunners on the loans.

Commitments are due at 10 a.m. ET on Friday for the U.S. loan and at noon ET on Friday for euro loan, the source added.

Proceeds will be used to repay notes at Ladbrokes and to pay related fees and expenses.

Entain is a Douglas, Isle of Man-based sports-betting, gaming and interactive entertainment group.

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