Gala Bingo Is To Refinance
20th January, 2010
Gala Coral, the owners of leading online bingo site Gala Bingo is close to refinancing according to an article posted on eGaming Review.
After some lengthy negotiations, the company seems to be close to a resolution. Gala Coral’s senior lenders, the Royal Bank of Scotland, Lloyds bank and Alcentra are talking with shareholders about their mezzanine debt of £540m and propose to turn the debt into equity.
The company itself is relaxed about the move. Neil Goulden, chairman of Gala Coral told the Financial Times, “We are aware that ICG and Park Square have put their mezzanine debt up for sale. We are hopeful it will end any lingering uncertainty and lead to a restructuring solution in the next couple of weeks.”
The mezzanine holders have been asked to make a payment of up to £150m raised by way of a rights issue. At the moment, Gala holds debts of approximately £2.5bn which would be cut to less than £2bn if the debt was turned into equity. The gaming operator is currently owned by private equity houses, Candover, Cinven and Permira.
By Rommon
