Mezzanine take over Ownership of Gala Coral
After a very turbulent few years the Gala Coral group, owners of Gala Bingo have finally completed their restructuring plans and this has now resulted in Mezzanine holders taking control of their company.
In a press release from Gala Bingo, it stated that Mezzanine debt holders have now converted their £558m holding into equity, plus they have also injected a further £200m in cash into the group, which will be going down to pay senior debt.
As a result of this move, the net debt which Gala Bingo stood is set to be reduced by over £700m to circa £1.9b and senior secured debt will reduce to circa £1.5b which is less than 5x last 12 months EBITDA of circa £310m.
With these latest developments the Gala Coral group should be much more stable and we are sure many of their employees will now be breathing a sigh of relief.
Commenting on the restructure, Gala Coral’s Executive Chairman, Neil Goulden, said:
“I am delighted that, after nearly 12 months, we have successfully concluded one of the largest and most complex restructurings in UK corporate history. The restructured Group is now in a strong position and fully able to compete in an increasingly competitive and global gambling market. We have 17,000 employees, nearly 2,200 retail outlets, over 3.5 million active customers and some of the best known gambling brands in Europe in Gala, Coral and Eurobet. When combined with our strong cash flow, reduced levels of debt, and over £200m in cash, we are very well positioned to invest in growth as the UK and global markets come out of recession.”
“In Apollo, Cerberus, Park Square, York Capital Management and others we have an enviable stable of financially strong, supportive and engaged new shareholders. At the same time, I would like to pay tribute to our existing shareholders (Cinven, Candover and Permira), as well as our senior and PropCo lenders, who have supported us through a complex and often turbulent restructuring and have always acted in the very best interests of the company.”
A very bold statement from the man at the top and hopefully this should now secure the future of land based Gala Bingo clubs for years to come.
