Française des Jeux (FDJ) reported that it has gained access to a syndicated loan of € 380 million, under which proceeds will be used to repay the 25-year national lottery operating concession negotiated by the French state.
Until becoming a publicly traded firm, it floated last November on the Paris Euronext Exchange. On its current national lottery and sports betting (point-of-sale) licence, the French Government granted FDJ a 25-year extension.
The contract extension of the FDJ was approved under the terms of the enterprise mandate ‘PACTE ACT’ and became the first French state asset to be privatised by the En Marche government of PM Emmanuel Macron.
Contract terms stipulated that by 30 June 2020, FDJ would have to pay 380 million euros to the French government, continuing to fulfil its exclusive lottery and wagering rights.
Updating creditors, FDJ governance underlines that it acquired options for a syndicated loan taking advantage of the attractive interest-rate climate of the current market.
The terms of the deal see the € 380 million loan develop ‘straight-line’ repayment options over a 20-year period. The French banks of BRED, Caisse d’Epargne, Credit Agricole and Crédit Lyonnais secure the loan transaction from FDJ.