Codere Restructures Debt to Boost Growth in Europe and Beyond

A Path to Stability

The recapitalization process, initiated in June, involved securing €60 million in new financing to support Codere’s business strategy and solidify its financial position.

The company’s net consolidated debt now stands at €65 million, a figure that significantly enhances its financial flexibility.

“This marks the beginning of a new stage of financial stability and strengthens our capacity for expansion,” Codere stated.

The company emphasized that its new debt structure, approximately 0.9 times its adjusted EBITDA for 2023, will allow it to focus on creating long-term value and strengthening its leadership in the gaming industry.

Transition of Ownership to Creditors

Part of the restructuring included transferring ownership to creditors and financing providers, a move that received unanimous support from stakeholders. While the process faced delays and exceeded its original Q3 timeline, its successful completion underscores Codere’s solvency and readiness to pursue strategic objectives.

CEO Highlights the Recapitalization’s Impact

Codere CEO Gonzaga Higuero hailed the recapitalization as a “decisive success” that guarantees the company’s financial stability. “This recapitalization guarantees our financial position and relaunches the company’s ability to achieve its objectives,” Higuero stated.

Addressing Economic Challenges

Despite global economic pressures, including significant challenges in Argentina due to currency devaluation, Codere has shown resilience. While the devaluation cost the company €40 million in Q2, revenues in the region are now growing faster than inflation, signaling a potential recovery.

Codere anticipates improved performance in the second half of 2024, driven by its reinforced financial position.