Equity and bond investment managers Jupiter Fund Management and Invesco Asset Management are reportedly preparing to take over control of Codere SA as part of a deal to restructure the Spanish online and land-based gaming heavyweight’s debt.
According to a Friday report from the Bloomberg news service, the arrangement with a group of creditors that includes Davidson Kempner Capital Management and PGIM Limited will see approximately €350 million ($422.6 million) in liabilities held by the Madrid-headquartered gaming giant converted into equity. The source detailed that the arrangement is to also involve Codere SA being provided with around €225 million ($271.1 million) in additional cash so as to help boost its immediate liquidity.
Coronavirus consequences:
The news service reported that Codere SA has been hit hard by the coronavirus pandemic with most of its land-based venues in Spain, Italy and Latin America being forced to close or operate at reduced capacities since March of last year. The Madrid-listed firm purportedly saw its most recent annual deficit rise by over 253% year-on-year to roughly €237 million ($286.3 million) even after the issuance of some €500 million ($604 million) in new super-senior notes.
Liquidation likelihood:
Codere SA moreover reportedly extended the maturity date of its existing debt in the summer but could now be liquidated as part of a restructuring that will see its operations transferred to a new holding company 95% owned by bondholders. Bloomberg reported that this proposal needs the support of 75% of shareholders but has already received a thumbs up from investors holding about 68% of the super-senior notes and around 50% of the senior notes.
Investor options:
The news service reported that the successful completion of this scheme would see existing shareholders in Codere SA offered the chance to convert their holdings directly into cash or shares in the new holding company. This latter proposition is to purportedly encompass roughly 46% of the Spanish firm’s current issued share capital with a further 29% offered notes due in 2027 featuring a 7.5% interest rate.
Crucial capital:
Bloomberg reported that another 25% of shareholders in Codere SA are to be given the opportunity to extend the maturity of their holdings by another four years to 2027 with the interest being changed to 2% plus payment-in-kind notes featuring a rate of return set at between 10.75% and 11.67%. There is to furthermore purportedly be ten-year warrants on non-voting shares with an economic value of up to 15% of net equity proceeds as well as €100 million ($128.8 million) in bridge funding with a 10.75% cash coupon maturing in September of 2023.
Play games casino online games refers to participating in casino-style games through an online platform. In essence, it combines the excitement of traditional casino games, like slots, blackjack, poker, and roulette, with the convenience of playing them online.
When you play games casino online, you can enjoy:
-
Variety of Games: Many online casinos offer a huge range of games, from popular slots to live dealer games, replicating the casino experience at home or on mobile.
-
Accessibility: Online casinos allow you to play anytime and anywhere, making it easy to enjoy your favorite games without traveling to a physical location.
-
Bonuses and Promotions: Online casinos often offer promotions, welcome bonuses, and rewards, enhancing your experience and providing extra funds to play with.
-
Real Money or Free Play: Most platforms offer options to play for real money or for fun, giving players the flexibility to test games before committing financially.
Online casino games bring the thrills and potential rewards of a real casino experience to your screen, with the added security, convenience, and bonuses that online platforms provide.
