Allwyn: Reduces borrowing costs through loan refinancing and a new bond issue

The listed company took steps to optimize its capital structure, announcing a repricing of its Term Loan B and a private placement of new bonds worth 55 million euros. The two transactions are expected to reduce annual financial expenses by approximately 5 million euros.

Allwyn: Reduces borrowing costs through loan refinancing and a new bond issue

This article is an AI translation of an original piece published in Greek. Read original

 

Allwyn AG, listed on the Athens Stock Exchange, announced the successful completion of two significant financing transactions, which strengthen the flexibility of its balance sheet and significantly reduce its financing costs.

Specifically, the subsidiary Allwyn Entertainment Financing (UK) plc has repriced its existing EUR Term Loan B, maturing in March 2032, reducing the interest rate spread by 50 basis points, from 300 to 250 basis points. The loan retains the same maturity date, March 28, 2032, and the repricing was conducted at its par value.

At the same time, the company priced a private placement of new secured bonds totaling 55 million euros, with a fixed interest rate of 4.625% and maturity in 2031. The new securities will have the same terms as the existing €550 million bond and will form a single series with it. The issuance is scheduled to be completed on July 8.

The proceeds will be used, on the one hand, to prepay a portion of the existing Term Loan B and, on the other hand, for general corporate purposes. According to the company, these two moves are neutral in terms of leverage and will not increase the group’s total debt.

The combined effect of the transactions is estimated to reduce annual interest expenses by approximately 5 million euros, strengthening Allwyn’s profitability and financial flexibility.

The company’s chief financial officer, Ken Morton, described investor demand as particularly strong, noting that achieving a spread of 250 basis points is an exceptional result for today’s market, where very few issuers have managed to secure comparable refinancing through 2026. As he pointed out, the transaction reflects investors’ confidence in Allwyn’s creditworthiness, its strategy, and its ability to achieve its business objectives.

 

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