Codere achieves 250 million euros of financing after an agreement with the bondholders

The company has reached an agreement on the refinancing proposal with bondholders who, jointly, hold approximately 57.5% of the bonds.

The capital restructuring operation - known as the 'lock-up agreement' - includes the issuance of new super senior bonds for a total value of 250 million euros and with an expiration date of September 2023.

This operation will be carried out in two phases, an initial one for the amount of 85 million euros intended to provide liquidity to the company until its closing, and an additional one for the amount of 165 million euros that will be offered to the bondholders to their subscription.

On this last point, the company chaired by Norman Sorensen has specified that the amount would be used to refinance the 'revolving' credit agreement granted to Codere, currently in force, and to provide additional financing at the closing of the operation.

As consideration, the sports betting group has achieved a two-year extension for existing bonds, until November 1, 2023, and an increase in their interest rate, based on a mandatory part with cash payment at 4, 50% and, at the option of the issuer, a complementary part with payment in cash (5% for bonds in euros and 5.875% for bonds in dollars) or with payment in kind (6.25% for the first and 7.125% for the seconds).

The bondholders who avail themselves of the operation will be entitled to receive acceptance commissions, which will depend on the implementation of the operation, which will start on the 20th with the anticipated one and on the 27th with the acceptance, and will be, in both cases, equivalent to the 0.5% of the principal amount of the existing bonds owned by it.

The agreement has been reached with guaranteed senior bondholders for an amount of 300 million dollars (264.38 million euros), with an interest rate of 7.625% and maturity in 2021, and for an amount of 500 million euros, with a 6,750% interest rate and maturity in 2021.