Codere seals recapitalisation agreement
The Spanish gambling operator will cut its corporate debt and gain €60m in new financing.
Spain.- Codere has confirmed a recapitalisation agreement that will reduce corporate debt by €1.2bn to €128m and give it €60m in new financing. It will receive the first €20m of new liquidity in July.
The ownership of the company’s operating group will pass to creditors and providers of new financing and corporate debt will be merged into a single instrument at €128m.
Codere said the move would allow it to focus on fulfilling its strategic plan to generate growth and long-term value.
The company said the agreement would “allow the group to significantly reduce the cost of interest thanks to the significant reduction in debt and the advantageous conditions achieved”.
Codere now forecasts leverage of around 0.9x adjusted EBITDA for 2023. Last month, Codere announced its results for the first quarter of 2024. Revenue was €313.8m, a 14 per cent decrease from last year, affected by restrictions in Mexico and a challenging macroeconomic environment in Argentina. Excluding these two business units, revenues were up by 4 per cent year-on-year and above budget.
