Sportech plc. operates in full compliance with British gambling laws and is one of the most trusted and well-known sports betting operators in Europe and worldwide. The company has recently announced that it manage to successfully carry out a refinancing procedure.
According to United Kingdom gambling news Sportech secured GBP 75 million in credit facility and achieved the following results:
- Various new multi bank facilities in order to provide debt refinancing;
- Strengthened its banking relationships with new multi bank structure instead of a single bank arrangement;
- Increased the total size of facilities by 25 percent in order to support the growth of its business;
- Made new arrangements in order to provide flexible financial covenants.
The brand new GBP 75 million multi-currency revolving credit facility will include up to GBP 5 million of ancillary working capital in key jurisdictions. This capital is provided by Barclays Bank, Bank of Scotland, and the Royal Bank of Scotland.
The new credit facility of one of the premier operator of online sportsbooks in United Kingdom has a debt maturity date of August 31, 2015, but can be easily extended for another 12 months if the operator requests it.
The credit replaced previous loan facilities offered only by the Bank of Scotland, which expire in July 2013 and consisted of GBP 55.5 million term loan and a GBP 3 million working capital facility for United Kingdom.
The company’s spokesperson revealed that the management is now confident it possesses the operational flexibility to carry on with its medium term plans.
He also stressed that according to terms and conditions of the new facility it will remain in place entirely, if the Sportech plc. succeeds in its ongoing VAT claim against HM Revenue and Customs. The claim is scheduled to be heard before the First Tier Tax Tribunal in October 2012.