Fortuna Entertainment Group N.V. („the Company“) informs that it has signed agreement for a 6-year multicurrency credit facility in the amount of EUR 50 million with Česká spořitelna, a.s. The agreement was executed on June 4, 2013.
The new loan will be used for refinancing of the existing bank debt of the Company, for dividend pay-out and share premium distribution and in addition, for investments into product development in the area of sports betting.
The financing is made up of three credit facilities: an amortizing loan of up to EUR 25 million, a non-amortizing loan of up to EUR 25 million and a revolving facility of up to EUR 5 million.
The total interest rate of the new financing consists of EURIBOR/ PRIBOR and interest rate margin in the range of 1.75 – 3.00% depending on Net Debt/ EBITDA ratio. In comparison to the previous credit facility, the Company will realize cost savings through interest rate swap. Similarly to the previous financing, the loan is secured by shares of Group´s subsidiaries in the Czech Republic, Slovakia and Poland, by bank accounts and Fortuna´s trademark.
As at June 3, 2013 the Company´s Net Cash position was EUR 3 million; after the refinancing and the dividend pay-out, the Net Debt position of the Company will be approximately EUR 32 million.
Source: Fortuna Entertainment Group N.V.