A group of Codere SA’s bondholders submitted a final offer to restructure the Spanish gaming operator’s 1.1 billion euros ($1.5 billions) of debt.
Creditors are proposing a new 200 million-euro five-year senior loan facility and 200 million euros of equity through a rights issue, according to a statement from Houlihan Lokey, an adviser to the group. The deal also exchanges the equivalent of about 980 million euros of bonds for 350 million euros of second lien notes and 350 million euros of third lien securities.
The deal allows Madrid-based Codere to seek better terms for the existing senior credit facility, according to the statement. Codere may have to repay 127.1 million euros of loans due tomorrow if it doesn’t reach agreement with creditors. The gaming operator has until 5 p.m. in London on Feb. 6 to accept the bondholders proposal.
Codere, which manages betting parlors and race tracks in Spain, Italy, and Latin America sought preliminary creditor protection on Jan. 2, giving it as much as four months to reach an agreement with debt holders as the founding Martinez Sampedro family fights to retain as much control as possible.
Bondholders will own 82.5 percent of Codere’s ordinary shares following the deal, while management will own 14.3 percent and other stockholders will retain 3.2 percent. The proposal is supported by 75 percent of noteholders, according to the statement.
Under the deal, José Antonio Martinez Sampedro will remain chief executive officer and chairman of the group’s board of directors.
The company said it will file for creditor protection if it fails to reach an agreement. Bondholders may seek to implement this offer in U.K. courts, according the statement.