Private equity group CVC Capital Partners will reportedly part-fund its acquisition of a controlling stake in igaming operator Sky Bet from UK pay-television broadcaster Sky with £390 million (€497.3 million/$590.9 million) in leveraged loans.
Under the purchase agreement, which was first announced in December, CVC will acquire a controlling stake in the operator in a deal worth up to £800 million.
Sky will receive £600 million in cash on completion and further deferred and contingent considerations up to the value of £120 million.
The total value of £800 million represents a multiple of approximately 15 times the earnings before interest, tax, depreciation and amortisation (EBITDA) of £50m for the 12 months through to June 30, 2014.
Banking sources have now told the Reuters news agency that the deal will be part-financed by loans, with this financing to comprise of £340 million in first lien loans and £50 million of revolver.
The debt financing, which is expected to be led by Goldman Sachs, is due to launch for syndication to institutional investors with a bank meeting scheduled to take place next week. Other banks are also expected to join the deal prior to the meeting.
The sources also added that the leverage on the deals totals 5.25 times.
source : www.igamingbusiness.com
