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Flutter Entertainment plc (NYSE:FLUT), a $51 billion market cap company that has delivered an impressive 42% return over the past year, announced Thursday that it and certain subsidiaries have entered into a definitive bridge credit agreement with a group of banks, securing binding commitments for a senior secured first lien term loan totaling $1.75 billion. The information was disclosed in a press release statement filed with the U.S. Securities and Exchange Commission. According to InvestingPro data, the company operates with a moderate level of debt and maintains strong revenue growth of nearly 17% in the last twelve months.
According to the filing, the proceeds from the facility are intended to finance or refinance amounts payable in connection with transactions described in a related Regulatory News Service announcement. The funds will also be used to pay associated fees and expenses, as well as for general corporate purposes and working capital needs. With current total debt of $7.45 billion and a healthy Altman Z-Score of 7.83, InvestingPro analysis suggests the company maintains strong financial stability.
The bridge facility will mature 12 months after its initial use, with two additional six-month extension options available. The loan will bear interest at a per annum rate based on Term SOFR plus a 1.25% margin, subject to certain step-ups over the term of the facility.
Other terms of the bridge credit agreement are described as substantially similar to those in the company’s existing Term Loan A, Term Loan B, and Revolving Credit Facility Agreement dated November 24, 2023, which was arranged with J.P. Morgan SE as administrative agent.
Flutter Entertainment, incorporated in Ireland and headquartered in New York, is registered on the New York Stock Exchange under the ticker (NYSE:FLUT). The company stated that the announcement was made to comply with disclosure requirements of the United Kingdom (TADAWUL:4280) Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
In other recent news, Flutter Entertainment has made significant moves, including acquiring full ownership of FanDuel for $1.755 billion. This acquisition is expected to save Flutter $65 million and add approximately $20 million to its net income by eliminating capital outflows to Boyd Gaming (NYSE:BYD). BTIG has raised its price target for Flutter Entertainment to $302, citing revised revenue and EBITDA projections for the company’s U.S. operations in 2025 and 2026. Jefferies resumed coverage of Flutter with a Buy rating and a price target of $380, highlighting strong growth potential and several catalysts for stock appreciation. UBS reiterated its Buy rating, with a $340 price target, expecting Flutter to exceed analyst expectations in its upcoming second-quarter earnings report. The firm also noted Flutter’s recovery from U.S. tax concerns and strong performance in the gambling sector. Additionally, FanDuel, a subsidiary of Flutter, has appointed new executives to lead its public affairs team, aiming to influence policy discussions in the online gaming industry. These developments reflect Flutter’s strategic initiatives and positive outlook from various analyst firms.
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