Ladbrokes has sealed a £1.35 billion debt facility with several banks in order to provide financing ahead of the merger with Gala Coral. The merged company is going to be the biggest bookmaker in the United Kingdom with a value of £2.3bn.

In June this year Ladbrokes and Gala Coral announced that they are going to merge. The deal is expected to be finalized by the end of 2015.

The £1.35 billion facility is divided into three tranches. Tranche A is a £600 million term facility that will be made available in October next year. This tranche is subject to extensions to January 2018. Furthermore, a £400 million Tranche B revolving credit facility will be available in October 2020, while Tranche C will grant the company access to a £350m revolving credit facility that will be available in June 2019.

The company also said that the existing £55m bank facilities for December 2016 were cancelled in September 2015 and that the remaining £350m June 2019 bank facilities will also be cancelled because they are a condition precedent to drawing on the new facility.

Ian Bull, the current finance director at Ladbrokes, said that the company is pleased for the support the banks had showed and he believes that this three-tranche facility would provide sufficient liquidity to the Ladbrokes Coral group after the merger.

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