27.03.2024

by Adam Dworak

Allwyn International Boosts Financial Agility with $500m Banking Syndicate Deal

Allwyn International, a key player in the global lotteries market, has successfully secured a substantial $500 million accordion facility, backed by a syndicate of international banks.

This strategic financial maneuver is set to bolster Allwyn’s capacity for growth and investment, particularly highlighting its recent move to invest in Instant Win Gaming.

Strategic Financial Expansion

The $500 million facility, integrated into Allwyn’s Senior Facilities Agreement (SFA), extends over a six-year period, offering the firm enhanced financial flexibility.

This move is poised to underpin Allwyn’s ambitious investment plans, including the notable acquisition in the gaming sector announced earlier in February 2024. Moreover, the funds will serve the dual purpose of repaying existing debts and supporting broader corporate objectives.

Syndicate and Advisory Support

The formation of the syndicate, comprising both new and returning private investors, marks a significant vote of confidence in Allwyn’s financial health and strategic direction. UniCredit has taken the lead as the Global Coordinator, with legal advisories provided by Clifford Chance and Allen & Overy, ensuring a robust framework for this financial arrangement.

Financial Reconfiguration

In conjunction with securing this new financial facility, Allwyn is making tactical adjustments to its existing credit arrangements. The firm is set to cancel £188.8 million of previously undrawn credit from a larger £380.0 million multipurpose facility, signaling a strategic consolidation of its financial resources.

Executive Insight

Kenneth Morton, CFO of Allwyn, expressed his satisfaction with the transaction, stating, “This transaction will support the continued execution of our organic and inorganic growth strategies as well as optimizing our cost of capital.”

Morton’s acknowledgment of the ongoing support from lending partners and the welcome extended to new banking relationships underscores the collaborative foundation of this financial initiative.

Our Comment on the Article

Allwyn International’s adept navigation of financial waters with the acquisition of a $500 million accordion facility signals a strategic foresight in fueling its growth ambitions and operational efficiency.

This move not only enhances Allwyn’s investment capabilities, particularly in its venture with Instant Win Gaming but also solidifies its financial foundation by optimizing capital costs and repaying existing debts. As Allwyn continues to expand its footprint in the global lotteries and gaming market, such financial maneuvers are indicative of a robust and forward-thinking approach to business growth and sustainability.

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