Tabcorp Issues Long-Term Debt to Raise A$427 Million

Ben H / 9 December 2022

Australian wagering giant Tabcorp is raising A$427 million and turning to the private placement market in the US to do so. The racing and betting company is issuing long-term debt to be accrued in two USD tranches of Notes with a 7.75% weighted average coupon.

The first tranche will mature in 7 years and the wagering firm will have to return A$249 million. The second one is maturing in 10 years and Tabcorp will have to pay the remaining A$177 million to US investors.

US Investors Support Tabcorp’s Post-Demerger Plans

According to Tabcorp, the funds the company will collect will be used for the repayment of existing debt and general corporate plans, as well as to fuel the firm’s growth after the demerger.

Tabcorp CFO Daniel Renshaw said that the “successful debt raising” was “a positive endorsement” of Tabcorp’s post-demerger strategy, adding that US investors supported the execution of Tabcorp’s post-demerger plans.

Diversifying Funding Sources

Renshaw called the successful debt raising a testament to Tabcorp’s financial muscle. He was also happy that the company was using different sources to fund its operations and diversify capital, as well as extend its debt maturity profile.

For Renshaw, the issuing of long-term debt would provide Tabcorp with opportunities to grow and to continue with the transformation strategy after the demerger of The Lottery Corporation Limited (ASX: TLC) and Tabcorp Holdings Limited.

The verdant surroundings and rustic ambience of Warwick Farm lend a distinct racing charm. While racing takes held on 23 Wednesday afternoons, the Australia Day race meeting in January is the main event. The racecourse is at the centre of a community that ...

The Warrnambool Racecourse is located in the suburb of Warrnambool, in a picturesque valley with great natural viewing platforms. Warrnambool Racecourse is around 260 kilometres from Melbourne’s CBD.

Terang Racing Club, sometimes known as the Flemington of the Bush, has a long and rich history of racing in the southwest. The expansive course was designed by the same person who created the Flemington track. The facilities include a well-kept, vast grandstand with a...

Swan Hill Racecourse is located in the centre of the Murray Region, 340 kilometres from Melbourne.Swan Hill Racecourse June racing festival has earned a name for itself as the best country festival in the state, if not the entire nation. The advice is to book as soon as ...

Sale Racecourse has first-rate facilities, including a wholly climate-controlled Public Bar and Grandstand Bar open on race days.The take pleasure in being a community club that includes our surrounding townships. Because of their family-friendly ambience and specific ...

Ben H
Ben Harris is the Communications Manager for KRUZEY, an AFL expert, and writer. He has one daughter that he loves dearly and four children's books... [Read full bio]

Comments are closed.

Think. Is this a bet you really want to place? Set a deposit limit.

For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au