ntralot S.A. announced on Thursday that it has entered into a lock-up agreement with an ad hoc group of noteholders, holding in excess of 75% of the EUR 250 million senior unsecured notes due 2021, pursuant to which the parties agree to support the balance sheet optimization transactions. Members of the Ad Hoc Group also hold in excess of 13% of the EUR 500 million senior unsecured notes due 2024.
The Lock-up Agreement marks an important milestone in the Group’s efforts to implement the transactions that will materially deleverage the Group’s balance sheet and enhance its maturity runway and liquidity. This would facilitate the Group to execute its business plan and capitalize on a number of attractive new opportunities across both the lottery and sports betting segments.
The Company has also been in discussions with other noteholders about these transactions and intends to continue to do so post-execution of the Lock-Up Agreement.
"The execution of the binding Lock-up Agreement is the successful result of a comprehensive balance sheet optimization process launched by the Group. The transactions will significantly improve the Group’s capital structure, and provide a solid foundation to support future growth and deliver long-term value to all stakeholders," said Intralot Chairman and Chief Executive Officer Sokratis Kokkalis. "The leadership team would like to thank all of our stakeholders, including our noteholders, creditors, shareholders, employees, and customers, for their commitment and continued support of Intralot throughout the process. We look forward to working together on the next chapter of Intralot’s journey."
Key Terms of the Transaction
Deleveraging will be achieved through two transactions, involving cross-conditional exchange offers to the 2021 SUNs and the 2024 SUNs.
i. The exchange of the 2021 SUNs into €205 million of new senior secured notes issued by Intralot Inc. due 2025; and
ii. An offer to holders of the existing 2024 SUNs to exchange their 2024 SUNs for up to 49% of the share capital of an entity to be established under the laws of Netherlands as a direct subsidiary of Intralot Global Holdings B.V. and the indirect parent of Intralot Inc.