Tabcorp Holdings Limited puts US$1.4 billion icing on Tatts wedding cake

Shares in gambling and entertainment giant Tabcorp Holdings Limited (ASX: TAH) are down 1.2% to $4.34 at the time of writing after with the 12-month share price graph indicating a decent amount of volatility for the stock.

Tabcorp today announced it would issue US$1.4 billion in long term notes to US private placement investors to complete the refinancing of its Tatts acquisition facility.

The notes comprise four US dollar denominated tranches totalling US $1,250 million and two Australian dollar denominated tranches totalling AU$195 million.

The proceeds of the notes will be used to fully repay the $1.8 billion bridge finance Tabcorp put in place to combine with Tatts group and repay existing bank debt and will be issued in June.

The Notes are a final step in the $4.7 billion acquisition by Tabcorp of lottery operator Tatts Group in December.

Tabcorp CFO Damien Johnston said the successful debt raising was a “positive endorsement” of Tabcorp by investors in the US private placement market and has “extended Tabcorp’s debt maturity profile”.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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