Codere’s consolidated net debt has been reduced to about €65m, ensuring “a future of stability and growth”, the operator said.
During the process, initiated in June, Codere also received €60m in new financing to “boost its business plan and reinforce its solvency and financial health”.
At the time the group said it expected leverage to be about 0.9x its adjusted EBITDA for 2023 following recapitalisation. Codere confirmed today (16 October) that its consolidated net debt would now be equivalent to half its 2023 adjusted EBITDA.
The recapitalisation, effective from yesterday, was unanimously supported by Codere’s creditors. The operator said previously that, under the arrangement, it would transfer its ownership to creditors and those providing the financing. The recapitalisation process was initially planned to be completed in Q3, but faced various delays.
The group expects to leverage the refinancing to take advantage of new expansion opportunities in its key markets in Latin America and Europe.
“This milestone marks the beginning of a new stage of financial stability and enhances the group’s capacity for growth and long-term value creation,” the group said in a statement.
“With an optimal debt structure and greater liquidity, Codere is in a position to take advantage of new expansion opportunities in its key markets, thus consolidating its leadership in the sector.”
“Decisive success” says Codere CEO
Codere CEO Gonzaga Higuero described the recapitalisation as a “decisive success”.
He added: “This… [is] a guarantee for the future that ensures our financial position and relaunches the company’s ability to achieve growth objectives.
“We appreciate the trust of our clients, the support of our investors and the commitment of our team and we are prepared to generate value for all our stakeholders.”
Macroeconomic headwinds
Last month, Codere posted a Q2 revenue decline of 10% on adverse macroeconomic conditions in Argentina, marked by a significant devaluation of the currency. The situation cost the company €40m during the quarter, with proceeds from Argentina down 45% compared to Q2 2023.
However, Codere said it was experiencing a recovery as revenues were growing above inflation. “The second half of the year could mark a positive turning point,” the company said.
Original article: https://igamingbusiness.com/sports-betting/online-sports-betting/codere-completes-recapitalisation/
