DibbsBarker advises on $4.35 billion financing of Tabcorp's merger with Tatts Group Limited

Services: Banking & Finance
Industry Focus: Financial Services
Date: 15 December 2017
DibbsBarker has advised Tabcorp Holdings Limited (ASX: TAH) on a A$4.35 billion syndicated loan to assist Tabcorp to acquire Tatts Group Limited. 
Under the transaction, which reached financial close on 14 December 2017, the debt finance has been provided by a syndicate of domestic and international banks, including all of the Australian majors, SMBC and BNP, and involved Tabcorp entering into a cash-settled equity swap with UBS AG Australia Branch in respect of approximately 10% of the Tatts shares on issue.
DibbsBarker structured the financing arrangements, prepared the finance documents and played a central role in working through and settling the significant transaction and payment mechanics necessary to refinance Tabcorp’s existing bank facilities and finance the acquisition of Tatts funded by the bank syndicate. 
The DibbsBarker team was led by Melbourne-based banking & finance partner Jason Morris, with assistance from senior associate Richard Fong.
Jason Morris said: “In what has been one of the largest acquisition financing transactions in recent Australian corporate history, banks were prepared to provide very large hold levels, which is reflective of a strong appetite in the bank market and confidence in the Tabcorp-Tatts merger.” 
“We have enjoyed the opportunity to work very closely with Tabcorp’s treasury team and its Deputy General Counsel – Corporate, Joshua Hunt, and with others involved on such a significant transaction. After months of negotiations and hard work from all sides, it is satisfying to see the complex financing reach financial close to enable the merger to complete successfully for Tabcorp, Tatts and their shareholders,” Jason said.  
Tabcorp is one of the few integrated gambling and entertainment companies in the world. Tabcorp’s three core businesses – Wagering and Media, Keno and Gaming Services – are delivered to people through retail, digital and Sky media platforms. Tabcorp’s portfolio of brands includes TAB, Luxbet, Sky Racing, Keno, TGS (Tabcorp Gaming Solutions) and eBET. 
The pro forma enterprise value of the combined gambling entertainment group will be approximately A$11.3 billion, with annual revenue of approximately A$5 billion. The combination is expected to be implemented on 22 December 2017.  

For more information, please contact:

Amanda Parks | Communications Manager
+61 2 8233 9704

E amanda.parks@dibbsbarker.com

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