Thursday July 19, 2012 : ONLINE BETTING GROUP REFINANCES
Sportech plc secures GBP75 million credit facility
The London-listed online sports betting group Sportech plc has announced the completion of a successful re-financing exercise, with key points achieved:
* New multi bank facilities to provide debt refinancing
* Banking relationships strengthened with new multi bank structure replacing single bank arrangement
* Overall size of facilities increased by 25 percent to support growth of the business
* New arrangements provide flexible financial covenants
Management revealed Thursday that the group has entered into a new GBP 75 million, multi-currency revolving credit facility, to include up to GBP 5 million of ancillary working capital facilities across key trading jurisdictions, provided by Bank of Scotland Plc, Barclays Bank Plc and The Royal Bank of Scotland plc.
This facility has an initial debt maturity date of 31 August 2015, can be extended at the group's request, with the agreement of the lenders, for a further 12 month period. It replaces previous amortising loan facilities provided solely by the Bank of Scotland plc, which were due to expire in July 2013 and consisted at the time of refinancing of a GBP 55.5 million term loan and a GBP 3 million UK working capital facility.
A spokesman for Sportech said that Management now believes it has operational flexibility to implement its medium term plans.
He drew attention to a clause in the agreement that the facility will remain in place in its entirety should the Sportech be ultimately successful in its ongoing Spot the Ball VAT claim against HM Revenue & Customs, due to be heard at the First Tier Tax Tribunal in October of this year.