William Hill issue bonds to institutional investors
British online and land-based gaming operator William Hill is hoping to raise approximately £375 million after announcing a scheme that will see it issue seven-year corporate bonds to institutional investors from tomorrow.
London-based William Hill revealed that proceeds from the initiative will be used to repay £275 million in short-term bridge loans that were taken on as part of its acquisition in March of Sportingbet Australia along with April’s purchase from Playtech Limited of the 29 percent stake in its William Hill Online joint venture.
“The remainder of the proceeds will be used to clear down outstanding amounts under the group’s revolving credit facility,” read a statement from William Hill.
“The issue of the bonds further strengthens the group’s balance sheet by diversifying its sources of debt funding and lengthening the maturity profile of its borrowings. The bonds will be issued with a coupon of 4.25 percent in an aggregate principal amount of £375 million.”
William Hill stated that net debt as of April 2 amounted to £742 million while its corporate credit rating from Moody's Investors Service stood at ‘Ba1 stable’ while Standard and Poor’s appraised it as ‘BB+ stable’.