Unless you somehow managed to secure yourself a five-year sojourn to the moon back in 2005, you’ll have heard all about the global recession. William Hill has been around long enough to remember the Great Depression and all the other financial crises of the 20th century. They’re almost as well versed in this as they are answering back to continual criticism thrown at them by the BHA amongst others.
The fact they’ve existed for what seems like an eternity may be why the banks have looked upon them favourably. William Hill Plc today announced a new banking deal that will run until November 2015 and is in the form of a £550m-committed revolving credit facility.
This facility includes a financial covenant package in line with the original agreement, which was due to expire in March 2012, and adds a further bank to the facility syndicate making a total of 11.
It’s hoped that the agreement will lower finance costs as a result of lower amortisation of arrangement fees and associated costs, more cost effective cash management and de-designation of the Group’s remaining effective interest rate hedging arrangements.
“We are pleased to have completed this new deal with the support of our relationship banks, which provides the Group with a banking facility of longer duration and with an associated reduction in our ongoing ordinary finance costs. This gives the Group greater certainty and lower costs in regards to its financing arrangements, further strengthening our balance sheet position,” commented the group’s finance director, Neil Cooper
As of 26 November 2010, drawn debt was £659m and net debt was circa £484m on a bank covenant basis, and it’s expected that the company will be subject to a £7m on-off fee.