Gamenet Group S.p.A
Covenant Tear Sheet: Gamenet’s €640M 2025 Senior Secured Notes
Tue 07/14/2020 05:28 AM
Editor's note: Reorg has prepared the following covenant tear sheet as a complimentary service for its European clients. Our Debt Explained legal analysts will also publish a more in-depth analysis of the bond documentation. We are happy to share our comprehensive legal and financial analysis with you, for a copy please contact questions@reorg.com.
Relevant Documents:
Covenant Tear Sheet
Offering Memorandum
Italian gaming company Gamenet has launched a five-year €340 million floating rate senior secured bond and a five-year €300 million senior secured bond (together the “notes”). The proceeds will be used to refinance the group’s existing 2023 notes, repay a loan made available to Gamma Bidco S.p.A. in connection with its acquisition of Gamenet, and pay estimated fees and expenses.
Investor meetings will be held until tomorrow, July 15, with pricing thereafter.
Reorg’s tear sheet below is a synthesized legal and financial analytic tool providing covenant and structural highlights to empower you in making your investment decision. A capital structure prepared by Reorg can be found at the end.
Gamenet’s capital structure is below:
Relevant Documents:
Covenant Tear Sheet
Offering Memorandum
Italian gaming company Gamenet has launched a five-year €340 million floating rate senior secured bond and a five-year €300 million senior secured bond (together the “notes”). The proceeds will be used to refinance the group’s existing 2023 notes, repay a loan made available to Gamma Bidco S.p.A. in connection with its acquisition of Gamenet, and pay estimated fees and expenses.
Investor meetings will be held until tomorrow, July 15, with pricing thereafter.
Reorg’s tear sheet below is a synthesized legal and financial analytic tool providing covenant and structural highlights to empower you in making your investment decision. A capital structure prepared by Reorg can be found at the end.
(Click here to see the full Covenant Tear Sheet)
Gamenet’s capital structure is below:
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03/30/2020
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EBITDA Multiple
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|---|---|---|---|---|---|---|
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(EUR in Millions)
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Amount
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Maturity
|
Rate
|
Book
|
||
|
|
||||||
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€100M New Super Senior RCF 1
|
-
|
|
|
|||
|
€85M Existing Super Senior RCF 2
|
-
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Oct-2022
|
|
|||
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Total Super Senior RCF
|
-
|
|
||||
|
€340 New Senior Secured FRN due 2025
|
340.0
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2025
|
|
|||
|
€300 New Senior Secured Notes due 2025
|
300.0
|
2025
|
|
|||
|
€225M Existing SSFRN due 2023 3
|
-
|
Apr-27-2023
|
E + 3.750%
|
|||
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€206.5M Existing SSFRN due 2023 4
|
-
|
Apr-27-2023
|
E + 5.125%
|
|||
|
Total Senior Secured Notes
|
640.0
|
3.3x
|
||||
|
Lease Liability IFRS 16
|
30.0
|
|
|
|||
|
Other Bank Loans 5
|
0.9
|
|
|
|||
|
Other Financial Liabilities 6
|
32.4
|
|
|
|||
|
Total Other Debt
|
63.3
|
3.7x
|
||||
|
Total Debt
|
703.3
|
3.7x
|
||||
|
Less: Cash and Equivalents
|
(82.8)
|
|||||
|
Less: Other Net Debt Adjustments
|
(7.5)
|
|||||
|
Net Debt
|
613.0
|
3.2x
|
||||
|
Operating Metrics
|
||||||
|
LTM Reorg EBITDA
|
191.1
|
|||||
|
|
||||||
|
Liquidity
|
||||||
|
RCF Commitments
|
100.0
|
|||||
|
Less: Drawn
|
(10.0)
|
|||||
|
Plus: Cash and Equivalents
|
82.8
|
|||||
|
Total Liquidity
|
172.8
|
|||||
|
Credit Metrics
|
||||||
|
Gross Leverage
|
3.7x
|
|||||
|
Net Leverage
|
3.2x
|
|||||
|
Notes: Capital structure is pro forma for the €640M notes issuance in July. LTM Reorg EBITDA is the run rate adjusted pro forma EBITDA. Other net debt adjustments includes €7.473M of current financial assets 1. RCF undrawn except for €10M first demand guarantees for deferred amount with respect to Goldbet acquisition. To be used to refinance the previous €85M RCF. Matures on the date that is earlier of October 1, 2024 or the date falling six months prior to the maturity of the notes. 2. Would be replaced by the €100M new super senior RCF 3. Existing 2023 notes to be refinanced using the proceeds of the new notes and cash at bank. 4. Existing 2023 notes to be refinanced using the proceeds of the new notes and cash at bank. €18.5M of these notes were redeemed on Nov 25, 2019 5. Short term bank borrowings related to credit lines used by certain subsidiaries in their normal business activities. 6. Includes €30.4M million of payables for acquisitions and €2M put option liability. |
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