Online gambling group GVC (GVC) has, as we suggested in our initial tip, refinanced the debt it accrued to make its bid for rival Bwin Party.
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Management had gone to Cerberus Capital for €400m (£337m) to fund the takeover. The speed with which the finance was needed meant the interest rate was relatively high considering the benign interest rate environment. But now management will borrow €250m from Nomura from 31 October to pay off part of the outstanding €386.5m it owes to Cerberus and will pay the balance from cash reserves. Nomura will charge 2 per cent above Euribor, which should give GVC some flexibility to restore its dividend as planned.
