Codere granted debt extension

Creditors have agreed to push back the start of maturity repayments from 2021 to 2023.
Creditors have agreed to push back the start of maturity repayments from 2021 to 2023.

Creditors have allowed the Spanish gambling group Codere SA to negotiate an extension on the maturity of senior secured debt notes.

Spain.- Codere SA has been granted an extension on its debt maturity payments from 2021 to 2023 as part of the Bolsa Madrid gambling group’s ongoing restructuring.

Creditors gave Codere access to a €250m credit line in July to help keep the firm’s South American business units liquid during Covid-19 lockdowns.  

Codere was forced to accept a debt tranche interest of 12.75 per cent, double what it paid on its long-standing corporate debt of €800m, to gain the credit lifeline.

The group has now renegotiated to push back the start of the debt tranche maturity repayments from 2021 to 2023 at a lower interest rate of 10.75 per cent.

Codere said payment of the interest would still be made by Codere Luxemburg, a new subsidiary formed to repay interest on its 2016 and 2020 revolving credit transactions. 

Codere Luxemburg will fulfil its creditor duties in accordance with the UK Companies Act, overseen by the High Court of Justice of England and Wales 

In its November Q3 trading statement, Codere reported year-to-date net losses of €240m, impacted by retail closures due to the Covid-19 pandemic and severe inflation in Argentina.

Codere expects to publish full-year results on February 26.

Codere has continued to stress the importance of its native Spanish market despite increased restrictions in the county.

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