GVC Holdings Allow Greater Flexibility For Credit During Crisis

GVC Holdings has moved to restructure terms with existing lenders on its revolving credit facility, allowing greater flexibility as the FTSE company navigates the complexities of the global COVID-19 business.

Last March, operating on a ‘worst-case scenario’ basis whereby the global sports calendar would be suspended until August, GVC governance sanctioned access to a £550 million rotating credit facility with a view to maintaining corporate liquidity across all segments of operations.

GVC has moved to a more optimistic stance after the first full month of shutdown by marginally lowering its credit facility to £535 million.

Existing lenders also allowed GVC to make 12-month trailing adjustments to the terms of the ‘covenant’ net debt / EBITDA calculations. When GVC withdraws more than 35 percent of credit capital during a trading period (up to September 30, 2021), the covenant limits are set at 6x net debt / EBITDA.

GVC emphasised in its update that it still has access to any capital related to its credit facility, with the company maintaining £250 million in cash funds, ‘excluding cash in shops, ring-fenced PSP funds and other items that may not be available immediately.’

GVC Group CFO Rob Wood, updating investors commented: “Having taken early and decisive actions to mitigate the impact of COVID-19 on our business, we are confident that we can achieve our target of breakeven cash flow per month during this crisis.

“I am delighted that we have reached an agreement with our key lending banks on this revised RCF which will provide us with further financial flexibility to continue on our path of excellent growth momentum. We remain well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.”

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About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.