Gaming Firm Intralot to Pay Back Bonds to Sweeten Debt Deal
(Bloomberg) -- A group of creditors to Intralot SA agreed to provide almost 148 million euros ($177 million) to the beleaguered gaming company to pay off some of its bonds due September and sweeten the terms of a restructuring deal that’s been under negotiations for months.
Under the new proposal, part of the 250 million euros of Intralot’s bonds maturing Sept. 15 would be paid out at par by a group of investors who’ve been discussing the deal with the company, according to a statement. The remainder of the 2021 notes will be swapped into new secured debt due 2025 and backed by the gaming company’s U.S. unit, as already agreed in January, it said.
Greece-based Intralot, which operates lotteries and sports betting services from Argentina to Bulgaria, has been hit hard by both contract renegotiations in some key countries and an industry-wide slump triggered by widespread lockdowns due to the Covid-19 pandemic. Revenue at the firm fell by more than 16% last year, according to the company’s annual report.
The company has been in talks with creditors including Beach Point Capital Management, M&G Plc and Oak Hill Advisors since last year to cut debt and reached an initial agreement with creditors in January. The new proposal, backed by about 82% of the 2021 bondholders, needs a minimum support of 90% to become binding.
Intralot is also offering to cede a minority stake in the U.S. unit to holders of bonds due 2024 in exchange for their notes, the company announced earlier this year. Intralot provides technology and facility management services for 12 state lotteries in the U.S. and it’s seeking to expand in sports betting, according to its website.
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