Ladbrokes secures £1.35bn finance ahead of Coral merger

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Ladbrokes has signed a £1.35bn financing deal ahead of its proposed merger with Coral.

In July, Ladbrokes and Gala Coral revealed plans to create a £2.3bn business which will be Britain’s largest high street betting group.

Ladbrokes has confirmed it has agreed committed financing with a syndicate of banks to fund the merger, subject to completion.

The funds will be available in three tranches of £600m, £400m and £350m between October 2016 and June 2019.

As a result of the agreement, £1.4bn of Gala Coral secured debts will not be transferred into the enlarged group after the merger.

Ladbrokes chief financial officer Ian Bull said: “I am pleased that our relationship banks have shown strong support in putting in place a significant size facility at similar pricing to our current facilities.

“We believe that this facility will provide sufficient liquidity to an enlarged Ladbrokes Coral group following the merger.”