Flutter Entertainment Secures $3.9B Loan Refinancing, Reduces Annual Interest Costs
Flutter Entertainment has refinanced $3.885 billion of its November 2023 term loan, resulting in significant interest rate reduction 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 maintains its 2030 maturity date and BBB Fitch rating.
Flutter logo above Earth globe
This financial move strengthens Flutter's position in several ways:
- Reduces annual interest expenses by $10 million
- Takes advantage of declining interest rates
- Maintains strong balance sheet health
- Provides additional capital for business growth
The company's financial health shows positive indicators:
- Leverage ratio of 2.4x as of September 30, 2024
- Reduction from 3.1x in December 2023
- Currently within medium-term leverage target of 2.0-2.5x
Fitch Ratings recently affirmed Flutter's BBB- rating with a stable outlook, citing:
- Strong free cash flow capabilities
- Commitment to reducing leverage
- Expected revenue growth in low double digits for 2025
- Projected EBITDA margins to reach 20% by 2027
The refinancing savings could support Flutter's share repurchase program or future acquisitions while maintaining its solid credit profile.
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