Multinational lottery group Allwyn AG has secured billions in funding to support its growth ambitions, as it targets growth and development across multiple regions.
The company has signed a deal with several lenders for a senior facilities agreement to secure funding of €2.15bn. The total will be divided into €400m in amortising term loans, €900m of bullet term loans, a €350m multi-currency revolving credit facility and a €500m delayed drawdown term loan.
Allwyn plans to use the funds to refinance its existing €1.7bn syndicated bank facility, of which €1.2bn is currently drawn. All four of the new facilities have been signed on a five-year maturity basis.
Kenneth Morton, Allwyn CFO, said: “I’m delighted with the level of interest that the transaction received, with the majority of existing banks upsizing their commitments and a further increase in the number of banks in our banking group.
“This syndication reflects the strength of our credit and confidence in our strategy. Our broad and diversified access to capital markets continues to allow us to achieve highly attractive pricing and terms across instruments and currencies.
“Following the successful repricing of our USD Term Loan B and debut EUR Term Loan B issuance earlier this year, this transaction is another step forward in our proactive management of our capital structure, reducing our interest costs and further extending our maturity profile.“
Following the refinancing of the €1.7bn facility, Allwyn aims to build on this further and support growth plans and what it calls ‘general corporate purposes’. The company has consolidated its position across multiple lottery markets, and is increasingly targeting a stronger position in sports and betting.
The group has a big acquisition coming up, for example. In December 2024 it secured terms to acquire a 51% stake in Greek sports betting firm Novibet for €327m, expected to conclude later this year in a move which will significantly step up its Greek presence – having already been owner of OPAP, the Greek national lottery operator, for several years.
There will be a big bidding battle coming in Greece, however, which will also require some financial investment. OPAP’s tenure as lottery operator is coming to an end and a new licence tender will be issued.
If Allwyn decides to participate, it may find itself going up against some hefty competitors, like Intralot, a Greek firm which has recently enhanced its standing as a B2B lottery firm by acquiring Bally’s Interactive International, the iCasino division of US firm Bally’s Corporation.
Meanwhile, Allwyn continues to target an enhanced standing in sports as it moves to become a lottery-led multinational entertainment organisation. Its endeavours in F1 are a good example of this, with it being a partner of both the motorsports series itself and popular team McLaren.