Ladbrokes Agrees New Debt Deal

Ladbrokes has signed a deal which will see it benefit from a new debt facility until 2016.

Ladbrokes, Britain’s second largest betting company, announced it has agreed a new debt facility worth £540m with its banks.

The new deal will run for five years until 2016, an increase on the old facility’s 2013 maturity date. The company estimates that the new joint interest rate will increase to 7.5 percent in 2012.

Despite the lower figure, the company is confident that the new deal will fulfill their needs, even after a bond worth £131m is returned in July next year. Ladbrokes also has a £225m bond with a 2017 maturity date.

Ladbrokes, which owns 2100 UK betting outlets, recently reported a third-quarter underlying operating profit. However, the firm recently withdrew from its potential acquisition of Sportingbet. Earlier this year, it also withdrew from talks with 888 Holdings.

The company is confident it will meet its annual targets, citing its strong cash generation record. Ladbrokes CFO, Ian Bull, said the new arrangements show the company is in good fiscal health.