Codere SA has finalized its Global Recapitalization Program, significantly reducing its corporate debt to approximately €65 million ($70.3 million). This is a turning point for the Spanish gambling operator, which had been burdened by around €1.4 billion ($1.5 billion) in debt prior to the restructuring effort.
The recapitalization was approved in June 2024 by 90% of Codere’s creditors, who agreed to reduce the company’s debt to roughly €190 million ($205.6 million). Creditors had until July 9 to agree on a lock-up arrangement that would facilitate the restructuring. As part of the deal, Codere’s ownership has now transferred to its creditors, most of whom were already shareholders.
This debt reduction is part of a broader strategy to stabilize Codere’s financial standing and enable the company to achieve its profitability goals by the end of 2025. Codere also received an injection of €60 million ($65 million) in new liquidity, which will bolster its business plan and improve its financial health as it seeks to expand operations in its key markets across Latin America and Europe.
Codere’s CEO, Gonzaga Higuero, said: “The transaction is a decisive success for Codere, a guarantee for the future that secures our financial position and relaunches the company’s ability to achieve the growth objectives set.”
He also expressed gratitude for the support from clients, investors, and the company’s team, saying they were now “ready to generate value for all our stakeholders.”
Higuero highlighted that the successful debt restructuring opens a new phase of financial stability for the group, enhancing its ability to create long-term value. With reduced debt and increased liquidity, Codere is positioned to pursue new growth opportunities in both Latin America and Europe, the CEO said.
The recapitalization has improved Codere’s financial metrics. The company now expects its net debt to be approximately half of its adjusted EBITDA for 2023, with a leverage ratio of 0.9x. This financial reorganization comes after a challenging period for the company, including a Q2 revenue drop of 10% due to adverse macroeconomic conditions in Argentina, which led to a €40 million ($43 million) loss in revenue.
Despite these recent challenges, Codere anticipates a positive turnaround in the second half of the year, as its revenue in Argentina begins to recover and outpace inflation.
Original article: https://www.yogonet.com/international/noticias/2024/10/18/82238-codere-reduces-debt-to-70-million-completes-its-recapitalization
