Playtech (LSE:PTEC), the gambling software and technology group, has priced €350 million of 5.5% senior secured notes due 2031.
The new notes are expected to carry ratings of BB- from S&P Global and Ba2 from Moody's on issue.
Proceeds will redeem the company's outstanding €300 million 5.875% notes due 2028, cover the redemption premium, accrued interest and transaction costs, with any balance going toward general corporate purposes.
Playtech has served notice to redeem the existing notes on 15 October, conditional on the new issuance closing and the company receiving the proceeds.
Once that redemption completes, the new notes will stand as Playtech's only material outstanding borrowing.
The company also holds a €225 million revolving credit facility, currently undrawn.
News Intelligence what this means for the company
Playtech is refinancing €300 million of 2028 debt by issuing €350 million of new 2031 notes at 5.5%, a 37.5 basis point reduction in coupon. The move extends the maturity wall by three years and, once the old notes are redeemed on 15 October, will leave the new issuance as Playtech's only material debt, alongside an undrawn €225 million revolving facility. The refinancing comes days after the company reported H1 2026 free cash flow of €101.0 million and a net cash position of €39.2 million, giving it capacity to absorb the €50 million net issuance without material dilution to its balance sheet.
The refinancing locks in a lower coupon and pushes debt maturity beyond 2030, reducing near-term refinancing risk. However, the company is issuing €50 million more debt than it is retiring, which slightly increases gross leverage despite strong H1 cash generation; the investment case turns on whether that cash flow momentum—adjusted EBITDA margin rising to 30% from 19% year-on-year—sustains through the full year and justifies the modest increase in net debt.
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