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Coutts-William Hill signs new five-year bank loan agreement

May 26, 2014

ENP Newswire - 26 May 2014

Release date- 25052014 - Bookmaker William Hill on Friday said it had signed a new five-year loan agreement with a syndicate of banks.

The multi-currency revolving credit facility is for GBP540m and expires in May 2019.

It replaces the group's existing revolving credit facility, which was due to expire in November 2015. 'The new facility reflects current market commercial terms and pricing for a loan of this nature for a credit of William Hill's standing,' the group said.

The initial margin under the new facility is expected to be lower than the current margin under the group's existing facility, it said.

Although the facility is unsecured, the lenders will benefit from a guarantee from the principal operating subsidiaries of the group. Finance Director Neil Cooper said: 'We are pleased to have completed this deal both with the support of our relationship banks and with two new lenders to the group.

'This transaction extends the group's debt maturities strengthening the group's balance sheet position and slightly reduces projected bank financing costs compared to the current facility.' The group expects to pay around GBP4.5m of arrangement and participation fees and associated costs, which will be charged to the income statement over the life of the new facility.

As a result of entering into the deal, the group will incur around GBP2m of one-off non-cash exceptional costs, it said.

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Source: ENP Newswire

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