Lottomatica set for €425m IPO by end of April
Italian giant also nets €1.1bn bridging loan from banking giants as it moves to pay bonds and loans
Lottomatica is set to list on the Euronext Milan by the end of April with a €425m IPO for the Italian operator giant.
Lottomatica announced it will use capital raised from the issuance of new ordinary shares of the company to implement its strategic plan, including the reduction of its financial leverage.
The number of shares included in the IPO will be confirmed by the operator at the end of the month.
Lottomatica said it will use part of the IPO proceeds to repay a €250m loan granted by Gamma Bondco and to finance the early repayment of a portion of its senior covered bonds due in 2025.
Following the IPO, it is expected that the firm’s net financial debt will sit at around €1.29bn, which is equivalent to a 2.4x run rate on adjusted EBITDA during the 12 months ending 21 March 2023.
Elsewhere, Lottomatica confirmed it has received commitment from Barclays, Deutsche Bank, Goldman Sachs, JP Morgan, UniCredit, Mediobanca, BNP Paribas and Banco BPM for a €1.1bn bridging loan agreement.
The loan will be delivered in two tranches of €600m and €500m, each of which will be available for use for approximately four months. The loan will expire five years after its disbursement.
Lottomatica also intends to use these funds to redeem senior covered bonds due in 2025.
At the same time as the announcement, the group provided a Q1 trading update, which has seen revenue and EBITDA hit record levels for the firm.
Revenue for the first three months of the year has amounted to between €421m and €423m, with online revenue jumping by 40% alone.
Adjusted EBITDA sits between €155m and €156m, representing a year-on-year increase of between 23% and 24%.
Last month, Lottomatica detailed its 2023 financial expectations, including securing between €1.6bn and €1.7bn in revenue.