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Codere finalizes financial restructuring via scheme of arrangement
By Caroline Salls
Pittsburgh, May 13 – Codere, SA has finalized its financial restructuring via a scheme of arrangement sanctioned by the High Court of Justice of England and Wales on Dec. 17, according to a company news release.
As a result of the restructuring, €760 million of senior notes due 2015 and $300 million of senior notes due 2019 were exchanged for $164.2 million of new second-lien notes due June 30, 2021, $355.8 million of new third-lien notes due June 30, 2021 and 2,475,000,000 new shares.
In addition, the company raised $438 million in new money from scheme creditors, including $218.9 million of new first-lien senior private notes due April 6, 2021 and $218.9 million in additional second-lien notes.
The new private notes pay annual interest in cash at Libor plus 700 basis points with a 1% Libor floor. The second-lien notes have a 9% coupon, of which 5½% is cash pay and 3½% is paid in kind. The third-lien notes have a 9% coupon, all of which is paid in kind.
Codere said the proceeds of the transaction will be used to repay €130 million of existing senior debt, fund €50 million in restructuring expenses and financing fees and normalize €46 million in working capital related to deferred gaming taxes in Spain and trade accounts payables.
As a result of the restructuring process, the company said it incurred extraordinary expenses during the first period, including €3.7 million of interest derived from the unpaid bond coupons and €1.4 million of default interest related to a senior facility agreement, as well as €3.5 million of extraordinary costs related to the financial restructuring process.
Codere is a Madrid-based gaming company.
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