Intertain raises £160m to finance Gamesys earn-out clause

The Intertain Group has raised £160 million (€190.6 million/$198.1 million) in additional debt finance to help fund an earn-out payment to Gamesys.

The pre-payment of £150 million relates to the Jackpotjoy and Starspins brands, which Intertain acquired from Gamesys in April of last year.

In a statement, Intertain said the proceeds from the debt financing will be used for the payment of fees, costs and expenses related to debt financing and pre-payment, with residual proceeds used to pre-pay existing term loans.

The debt finance comprises a £70 million incremental first lien term loan and a £90 million second lien term loan facility, both of which were arranged by Macquarie Capital (USA) Inc. and Macquarie Capital (Europe) Ltd.

Intertain said it expects the amount of the earn-out to exceed that of the pre-payment, with the remaining balance set to be paid out of free cashflow in due course, in accordance with the terms of the earn-out.

Andrew McIver, president and chief executive of Intertain, said: “Today’s debt financing is an important step forward for Intertain.

“The financing unlocks the benefit of the advantageous additional non-competition covenants and the amendments to our various operating agreements with the Gamesys group.

“It also provides certainty to our shareholders and other stakeholders with respect to the funding of our future earn-out obligations.”

Related article: Intertain completes acquisition of Gamesys brands