Spanish multinational operator founded in 1980 and listed on the national stock exchange, Codere, has announced the successful completion of its global recapitalization process.
As a result of the worldwide corporate restructuring aimed to change the company’s capital structure, the operator, who was the pioneering gaming company to provide regulated brick-and-mortar-based sports betting in Spain, significantly slashed its debt by over €1 billion ($1.08 billion).
The important financial reduction equates to a net debt of around €65 million ($70.8 million), which represents roughly 0.5x Codere’s adjusted EBITDA for 2023.
€60M Cash Injection for “a New Stage of Financial Stability”
The recapitalization, finalized on October 15, was supported by a cash injection of roughly €60 million ($65 million), which the company stated would bolster its business plan and “strengthen its solvency and financial health.”
Additionally, the company emphasized the recapitalization, which was initiated in June and received the unanimous support of Codere’s creditors, marks “the beginning of a new stage of financial stability and strategic growth for the company.”
The operator had previously stated that, as part of the agreement, it would transfer ownership to its creditors and financiers.
Although the recapitalization process was originally scheduled for completion in the third quarter, it encountered several delays.
Codere’s chief executive officer, Gonzaga Higuero, commented on the completion of the process, calling it a “decisive success” and describing it as “a guarantee for the future” that will ensure their financial position and relaunch “the company’s ability to achieve growth objectives.”
Higuero further expressed appreciation for their clients’ trust as well as the support received from investors and the commitment of their team, adding they were “prepared to generate value” for all stakeholders.
Codere to Leverage the Refinancing and Expand
The group that published a 10% revenue drop for Q2 in September attributed to challenging macroeconomic conditions in Argentina marked by the devaluation of the currency, expects to use the refinancing to unlock new growth opportunities in key markets in Europe and Latin America.
Roughly three years ago, Codere announced its LatAm-focused sponsorship agreement with Real Madrid CF had been extended throughout June 2026.
“With an optimal debt structure and greater liquidity, Codere is in a position to take advantage of new expansion opportunities in its key markets, thus consolidating its leadership in the sector,” read a recent statement from the group.
39% YoY Growth for Codere Online
Meanwhile, the leading online sports betting and casino operator that launched in 2014 as part of the Codere Group, Codere Online, reported net gaming revenue of €54.4 million ($59.2 million) for the second quarter of 2024, reflecting a 39% year-on-year increase.
This growth was fueled by positive outcomes from Euro 2024 and the Copa América, as well as strong performances in Spain and Mexico.
In June, Codere also appointed Gabriel Saenz de Buruaga, Taavi Davies, and Claude Noesen to its board of directors, each serving an initial one-year term.
The global recapitalization was possible with help from Houlihan Lokey and Allen & Overy, two financial and legal advisor firms that Codere inked agreements with at the end of March.
