Wed 01/06/2021 10:54 AM
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Greek gaming group Intralot is expected to launch a proposal to restructure its €250 million 2021 notes next week, sources tell Reorg.

Details of the proposal are still being discussed but several sources told Reorg that the restructuring proposal could entail a partial repayment of the notes in cash and a partial reinstatement as senior secured notes. A portion of 2021 could also be equitized, sources added. Oakhill and Beachpoint are among the largest 2021 noteholders, though they also have some cross-holdings in the group’s €500 million 2024 notes, as reportedContinue reading for the EMEA Core Credit by Reorg team's update on the Intralot restructuring proposal, and request a trial for our coverage of  stressed, distressed and high-yield credits in the region.

The proposal does not include plans to restructure the 2024 notes, sources added. Holders 2024 notes include Gramercy, Morgan Stanley and Alchemy. A group of 2024 holders are working with PJT and Dechert as financial and legal advisors, respectively.

Holders of the 2021 notes are working with Houlihan Lokey and Millbank. The company is advised by Evercore and has retained Allen & Overy to assist in a strategic review of its capital structure.

In a Dec. 8 earnings call management said it was aiming to maintain operational metrics at 2019 levels, depending on the impact of the Covid-19 pandemic, replacing losses from Bulgaria with new EBITDA mainly from the U.S. and other projects as well as targeting a 26% reduction in operating expenditure.

Full-year 2020 EBITDA is forecast in the €60 million to €62 million range, after a Covid-19 impact of €25 million to €28 million. It also said it expects the U.S. lottery business to contribute $50 million.













































































































































































Intralot SA


09/30/2020

EBITDA Multiple

(EUR in Millions)

Amount

Maturity

Rate

Book


€18M Intralot Global Holdings BV Loan Agreement 1

17.2


EURIBOR + 1.650%

Total Bank Borrowings and Facilities

17.2

0.3x

€250M Senior Notes (Facility A)

250.0

Sep-15-2021

6.750%

€473.8M Senior Notes (Facility B)

473.8

Sep-15-2024

5.250%

Total Senior Notes

723.8

13.7x

Other Financial Debt 2

6.7



Total Other Debt

6.7

13.8x

Lease Liabilities

11.3



Total Leases

11.3

14.0x

Total Debt

758.9

14.0x

Less: Cash and Equivalents

(107.2)

Net Debt

651.7

12.0x

Plus: Market Capitalization

24.2

Enterprise Value

675.9

12.5x

Operating Metrics

LTM Revenue

431.1

LTM Reported EBITDA

54.2

LTM Reorg EBITDA

53.3


Liquidity

RCF Commitments

18.0

Less: Drawn

(17.2)

Plus: Cash and Equivalents

107.2

Total Liquidity

108.0

Credit Metrics

Gross Leverage

14.0x

Net Leverage

12.0x

Notes:
Capital structure is post IFRS-16. EBITDA is the company's reported EBITDA from continuing operations. Market data as of Jan. 5. Cash includes €2.5M of short-term time deposits. Reorg EBITDA comprises the company's reported proportionate EBITDA of fully consolidated entities including EBITDA from equity investments in Peru, Greece, Taiwan and Bulgaria.
1. In February and March 2020 Intralot Global Holdings BV signed a loan agreement, with relevant securities on financial assets, amounting up to €18 million as a revolving facility. Loan agreement bears a floating reference rate (relevant bank’s cost of funding cost) plus a 1,65% margin.
2. €748.8M of total financial debt, less €11.3M lease liabilities, €713.6M bond debt and €17.2M bank debt.



-- Luca Rossi, Connor Lovell, Aurelia Seidlhofer
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