This loan aims to alleviate the impact the global shutdown has had on the group’s business
Australian gaming giant Aristocrat Leisure announced the pricing of a new US$500 million term loan, with the aim of strengthening the group’s balance sheet. This development leaves Aristocrat’s total debt at around US$2.35 billion. Aristocrat said the proceeds of the loan will be used for general corporate purposes and the company stated the investors support the loan.
Aristocrat CFO Julie Cameron-Doe said “The TLB market continues to provide Aristocrat with flexibility and competitively priced debt on a covenant light basis, and we are grateful for the ongoing support of this important debt market.” and she added “We are very pleased with the outcome of this debt raising which was significantly oversubscribed.”
Aristocrat also stated the transaction is part of an ongoing strategy to enhance liquidity and an investment to the group’s growth in order to better withstand challenges that COVID-19 caused in the industry.
Last month the publicly listed company announced that it would be standing down approximately 1,000 of its roughly 4,000 staff members.
The company’s dividend for the 2020 financial year has also been suspended. The new loan is another way to alleviate the impact the global shutdown has had on the group’s business.
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