Ladbrokes agrees new banking facilities

Ladbrokes, the FTSE 250 bookmakers, has agreed new banking facilities worth £540m.

The agreement with the firm's "relationship banks" will continue until 2016 and replaces the existing facilities which were due to run out in 2013.

Interestingly, the £540m figure is £20m less than the current arrangements.

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Nevertheless, Ladbrokes believes the new facilities provide the business with "adequate headroom" even after paying back a £131 million bond in July 2012.

The group has a further £225m bond which matures in 2017. It is estimated that the new blended rate of interest for 2012 will be 7.5%.

Commenting on the banking agreements Ladbrokes' chief financial officer Ian Bull said:

"We are pleased to have extended the maturity profile of our debt with these new facilities and welcome the support our lenders have shown in the business."

News of the new overdraft agreements saw Ladbrokes's shares rise 0.92% at the open this morning. The company is 7.5% up this year but over the last five years has fallen 67%.

BS