Tabcorp Reaches Agreement For Debt Postponement

Tabcorp Holdings has reached an agreement with its US debt holders that will enable the ASX gambling group to postpone payments on their debt agreements.

Last month, Tabcorp announced it had entered into negotiations with US debt holders to get new ‘covenant terms’ on its AUS $2.1 billion corporate debt tranche, maximising financial flexibility as it looks to navigate COVID-19 headwinds.

Tabcorp has stated by releasing a market filing that US bond holders will require the group to postpone the next two covenant interest payments covering the trading periods of June 30 and December 31, 2020.

Tabcorp will see the redemption on interest repayments null its investor dividend incentives for the fiscal year ending June 30 – a figure previously reported in full-year performance of Tabcorp 2019/2020.

Maintaining no debt interest repayments for the remainder of 2020, Tabcorp revealed it would improve corporate liquidity from AUS $720 million to around AUS $830 million (EUR 500 million).

On the transaction statement, Tabcorp Group CEO David Attenborough commented: “Following on from the support of our syndicate banks, we now welcome the support of our US noteholders for the financial flexibility they have afforded us in managing the uncertainty created by Covid-19.”


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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.