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888 sets talk in expected £600 million-equivalent bonds backing William Hill acquisition
By Paul A. Harris
Portland, Ore., July 6 – Price talk surfaced Wednesday on a two-part euro-denominated secured bond deal (B/B1/BB+) backing the acquisition of British bookmaker William Hill International’s non-U.S. assets from Caesars Entertainment Inc. by 888 Holdings Ltd., according to market sources.
The bond portion of the financing includes five-year fixed-rate notes talked to yield 11¼% to 11½% and floating-rate notes talked at a 550 basis points spread to Euribor, with no Euribor floor, at a discount of 85 to 86.
Pricing is expected on Thursday.
The final size of the bond deal remains to be announced, sources say.
The bonds had been slated to price last week but were delayed by ongoing market volatility and thinning liquidity ahead of the extended Independence Day holiday in the United States, sources say.
Prior to the delay the bond offering was heard to be benchmark size, with the number £600 million-equivalent, across both tranches being telegraphed.
JPMorgan is leading a syndicate of banks that includes Morgan Stanley, Mediobanca and Barclays.
Financing for the acquisition also includes a $500 million term loan B, a £401 million equivalent euro-denominated term loan A, a £358 million term loan A and a £150 million revolver.
Proceeds from the bond and bank tranches plus cash reserves will be used to support the acquisition of William Hill's non-U.S. assets from Caesars Entertainment for an enterprise value of between £1.95 billion and £2.05 billion, as well as to repay William Hill debt and for working capital and general corporate purposes.
888 Holdings, which owns gambling brands and websites, is based in Gibraltar.
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