Flutter Entertainment Cuts Annual Interest Costs by $10M Through Loan Refinancing
Flutter Entertainment has refinanced $3.885 billion of its November 2023 term loan, resulting in significant interest rate reductions and annual cost savings.
The refinancing reduces the interest rate by 25 basis points from SOFR plus 2.00% to SOFR plus 1.75%, generating approximately $10 million in annual interest expense savings. The loan's 2030 maturity date remains unchanged, and it maintains its "BBB" Fitch rating.
Flutter logo above Earth globe
Key Financial Impact:
- $10 million annual interest expense savings
- Leverage ratio improved to 2.4x (down from 3.1x in December 2023)
- Current leverage within medium-term target of 2.0-2.5x
- Market capitalization: $46.53 billion
Credit Profile Highlights:
- Investment-grade territory rating
- Stable outlook from Fitch Ratings (BBB- rating)
- Strong free cash flow capabilities
- Commitment to reducing leverage
Future Outlook:
- Expected revenue growth in low double digits for 2025
- Projected EBITDA margins to reach 20% by 2027
- Potential for strategic acquisitions
- Recently announced share repurchase program
The refinancing demonstrates Flutter's proactive financial management and positions the company, parent of FanDuel and Betfair, for continued growth in the gaming industry while maintaining financial flexibility.
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