La Française des Jeux (FDJ), a prominent name in the European gambling and lottery industry, and French monopoly holder, has announced the success of its inaugural bond issuance. The €1.5 billion raised will predominantly fund the refinancing of the bridge loan tied to its acquisition of Kindred Group, marking a strategic milestone in FDJ’s expansion.
Details of the bond issuance
This debut issuance was structured in three tranches, each totaling €500 million, with varying maturities and interest rates:
– 2030 Maturity: Bonds with a 3.000% annual coupon, maturing on November 21, 2030.
– 2033 Maturity: Bonds carrying a 3.375% annual coupon, maturing on November 21, 2033.
– 2036 Maturity: Bonds offering a 3.625% annual coupon, maturing on November 21, 2036.
Rated Baa1 with a stable outlook by Moody’s, these bonds align with FDJ’s long-term credit rating.
Strong market confidence
The issuance, supported by extensive marketing to both French and international bond investors, attracted a —almost five times the initial target. Over 200 top-tier investors subscribed to each tranche, underscoring strong confidence in FDJ’s strategic direction and financial stability.
The transaction was coordinated globally by BNP Paribas, Crédit Agricole CIB, and Société Générale, with active bookrunning by major players such as HSBC, Natixis, and Goldman Sachs Bank Europe SE, among others.
Complementary financing
In addition to the bond issuance, FDJ secured a €400 million syndicated loan from leading French and international banks. This five-year amortising facility will also be used to retire the bridge loan initially taken for the Kindred acquisition.
FDJ initiated its acquisition of Kindred Group with a public cash offer in January 2024, proposing SEK 130 (€11.38) per share. The offer, well-received by shareholders, resulted in FDJ securing over 90% of Kindred’s shares by early October. Following this, FDJ invoked its squeeze-out rights to acquire the remaining shares from minority stakeholders under the same terms. By late October, FDJ had achieved 98.6% ownership, solidifying its control and marking a significant step in its strategic expansion. Minority shareholders must finalise their share transfers by December 27, 2024, completing the process.
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