Codere SA Secures $36m Working Capital To Retain Mexico Subsidiaries

A filing with Spain’s CNMV capital markets commission disclosed that Codere SA has negotiated terms on two corporate credit lines, receiving approximately € 36 million in working capital to help the gambling company Bolsa Madrid retain its Mexico and Uruguay business subsidiaries.

Codere Governance is seeing the deal increase the scope of its current € 90 million revolving credit facility, of which the company has received € 40 million of funds to date. The expanded credit facility of Codere is also linked to a € 770 million refinanced loan, which is set to mature in 2021.

Most of the working capital will be allocated to the Mexican business unit of Codere, helping to improve the size and future prospects of its existing operations where Codere currently operates 95 arcade properties in addition to 90 betting points.

Any remaining funds from the secured deal will be further used to keep Codere’s Uruguayan company alive–the group is searching for a purchaser of six arcades, 26 betting points and two racing tracks for this sector portfolio.

Codere Governance continues to prioritise Mexican development as a key mandate, despite being forced to bear € 15 million losses on its 2019 accounts primarily related to auditing irregularities associated with its Mexican subsidiary.

Codere revealed last August that it had signed a comprehensive joint venture agreement with Hard Rock International to build a $1 billion casino resort project in Mexico City, improving its Mexican prospects.

Codere Governance has announced that it has approved a review of its’ corporate structure’ related to corporate leadership and internal systems and controls, appeasing investor fears after a year of disastrous trading and auditing errors.