La Française des Jeux (FDJ), the French national lottery and sports betting operator, is set to embark on a strategic financial journey to support its recent acquisition of Kindred Group. The company is poised to launch its first-ever bond issue, aiming to refinance the €2 billion bridging loan it secured for the €2.6 billion Kindred acquisition. Concurrently, FDJ is finalizing a €400 million syndicated loan with top-tier French and international banks, further solidifying its financial position for the future.

Unlocking Growth Opportunities Through Strategic Financing

Diversifying Funding Sources with Bond Issue

FDJ's decision to launch a bond issue marks a significant milestone in the company's financial strategy. By tapping into the bond market, the company is diversifying its funding sources, reducing its reliance on traditional bank financing. The bond issue, which will be divided into three tranches with maturities ranging from 6 to 12 years, will provide FDJ with the necessary capital to refinance the bridging loan used for the Kindred acquisition.The bond issue is expected to be well-received by investors, as FDJ has recently been assigned a long-term credit rating of Baa1 by Moody's, indicating a stable outlook. This rating reflects the company's strong financial position and its ability to manage its debt obligations effectively. By accessing the bond market, FDJ can potentially secure more favorable terms and conditions, further enhancing its financial flexibility.

Strengthening the Balance Sheet with Syndicated Loan

Alongside the bond issue, FDJ is finalizing a €400 million syndicated loan with top-tier French and international banks. This syndicated loan will be repaid over a five-year period, providing the company with additional financial resources to support its growth initiatives.The syndicated loan serves as a complementary financing tool, allowing FDJ to diversify its debt portfolio and maintain a healthy balance sheet. By securing this loan, the company can further optimize its capital structure, ensuring it has the necessary funds to execute its strategic plans and capitalize on emerging opportunities in the gaming and lottery sectors.

Fueling Expansion and Enhancing Competitiveness

The combination of the bond issue and the syndicated loan will enable FDJ to strengthen its financial foundation and position itself for long-term success. The additional capital will allow the company to seamlessly integrate the Kindred Group acquisition, leveraging synergies and expanding its market reach.Moreover, the strategic financing initiatives will enhance FDJ's competitiveness in the rapidly evolving gaming and lottery landscape. With a robust balance sheet and diversified funding sources, the company can invest in technological advancements, product innovation, and customer-centric initiatives, ultimately driving growth and solidifying its position as a leading player in the industry.

Navigating the Regulatory Landscape with Confidence

The French gaming and lottery market is subject to a complex regulatory environment, with ongoing discussions and policy changes that can impact the industry's dynamics. By securing the necessary financing, FDJ is positioning itself to navigate these regulatory challenges with confidence, ensuring it can adapt and thrive in the face of evolving market conditions.The bond issue and syndicated loan will provide FDJ with the financial resources and flexibility to respond swiftly to regulatory changes, seize new opportunities, and maintain its competitive edge. This strategic approach will enable the company to continue delivering value to its shareholders and customers, solidifying its position as a trusted and innovative player in the French gaming and lottery sector.