Intralot lands €148m from creditors to clear balance sheet
Greek operator to swap remainder of debt for bonds with creditors as Covid-19 takes its toll
A group of creditors have agreed to hand nearly €148m (£127.2m) to Intralot as the struggling operator looks to pay off bonds due in September.
The creditors, also know as the Ad Hoc Group, hold €250m senior unsecured notes (SUNs), due 2021, as part of a lock-up agreement with the Greek operator and have now sanctioned a portion of these bonds to allow Intralot to move towards a clean balance sheet.
Under the terms of the agreement, known as the redemption facility, the creditors will pay out €147.6m of the €250m in 2021 SUNs to allow Intralot more financial flexibility.
Additionally, Intralot and the creditors will enter into a new additional 2021 SUNs purchase agreement which will see Intralot issue an equivalent amount of additional 2021 SUNs to the creditors.
Intralot has had a difficult time during the Covid-19 pandemic, with revenue falling more than 16% in 2020.
Intralot said: “The entry into the redemption facility and the additional 2021 SUNs purchase agreement mark a significant step towards the group’s efforts to implement its balance sheet optimisation transactions by way of consensual debt exchange offers.”