Allwyn sets talk in €1.3 billion equivalent three-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., April 20 – Allwyn Entertainment Financing (UK) plc set price initial talk in its €1.3 billion three-part offering of senior secured notes (expected ratings BB/BB-), according to market sources.

The Rule 144A and Regulation S deal features a tranche of euro-denominated seven-year fixed-rate notes, which become callable after three years at par plus 50% of the coupon, with initial price talk in the 7½% area. Earlier guidance was in the mid-to-high 7% area.

The deal also features a tranche of euro-denominated six-year floating-rate notes, which become callable at par after a year, in the market with initial spread talk in the Euribor plus the 425 basis points area (earlier guidance was in the mid-400 bps area). Price talk on the floating-rate notes is 98.5 to 99, in line with earlier guidance.

The sole dollar-denominated tranche comes in six-year fixed-rate notes, which become callable after 2.5 years at par plus 50% of the coupon, with initial price talk in the 8% area (earlier guidance was in the low-to-mid 8% area).

Tranche sizes remain to be determined.

The notes are set to price on Friday.

Proceeds will be used to redeem the 2024 senior secured notes, to repay the Apollo preference shares issued by Allwyn AG, to repay drawings under the revolver and for general corporate purposes.

Goldman Sachs Bank Europe SE is the global coordinator and physical bookrunner for the dollar-denominated notes and will bill and deliver for all tranches.

BNP Paribas and Goldman Sachs are the global coordinators and physical bookrunners for the euro-denominated tranches.

Citigroup, Deutsche Bank, Erste Group, HSBC, ING, JPMorgan, Morgan Stanley, RBI, SG and UniCredit are joint bookrunners for all tranches.

Allwyn is a European national lottery operator based in London.

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