FanDuel Parent Company Flutter Seeking $1B to Repay Debts

Flutter Entertainment, the parent company of FanDuel, is actively seeking to raise $1 billion through the issuance of senior debt notes. This maneuver is aimed at consolidating and repaying existing debts amid a transitional period for the global online gambling industry.

The Flutter logo on a wall inside its offices (Source: Flutter Entertainment)

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The decision to issue these debt notes, which are to be denominated in both US dollars and euros, reflects a proactive approach to capital management. By securing these notes, due by 2029, Flutter is not only looking to optimize its debt profile but also to reinforce investor confidence in its long-term growth plans and financial health.

Related: Flutter Entertainment Reports Great Revenue Progress in 2023

As a twin-listed entity, appearing on both the New York Stock Exchange (NYSE) and the Financial Times Stock Exchange (FTSE), Flutter has the unique advantage of appealing to a diverse pool of international investors, which can be instrumental in the successful issuance of these senior secured notes. The company's strategic financial planning, coupled with its solid market presence, positions it well to meet its financial obligations and continue its trajectory of growth and expansion.

This financial initiative is expected to provide the necessary liquidity for FanDuel's parent company to manage its debt efficiently. It will also give it an opportunity to invest in new opportunities that can drive further success in the highly competitive gambling and entertainment industry.

Furthermore, the issuance of the notes by 2029 offers a clear signal to the market about Flutter's long-term financial strategy. By locking in favorable terms now, the company is taking a prudent step to shield itself from potential interest rate volatility in the future.

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Revenue Sees Strong Uptick

Flutter's inaugural year on the NYSE has been marked by a robust performance, with projections indicating a significant uptick in US revenues, ranging from $5.8 billion to $6.2 billion, reflecting a 36.3% increase. This growth is complemented by an anticipated surge in Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), estimated to be between $635 million and $785 million, a 206.1% rise from previous figures.

When setting aside the US market's expansion, Flutter's global revenue forecasts remain optimistic. The company expects to achieve corporate revenues between $7.65 billion and $8.05 billion, a 6.3% growth. Adjusted EBITDA is also projected to increase, with expectations set between $1.63 billion and $1.83 billion, marking a 5.4% rise.

Flutter's financial health is further outlined in its FY2023 accounts, which reveal a long-term debt standing at $7.05 billion, an increase from the $6.75 billion reported in the previous fiscal year. Its net debt jumped, as well, going from $5.67 million at the end of 2022 to $5.79 million a year later, according to the company's financial data.


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