Flutter Entertainment Reduces Annual Interest Expenses with $3.9B Loan Refinancing
Flutter Entertainment has refinanced $3.885 billion of its term loan from November 2023, resulting in significant interest savings for the FanDuel parent company.
The refinancing reduces the interest rate by 25 basis points, from SOFR plus 2.00% to SOFR plus 1.75%, generating approximately $10 million in annual interest expense savings. The loan maintains its 2030 maturity date and "BBB" Fitch rating.
Flutter logo above Earth globe
This financial move demonstrates Flutter's proactive approach to balance sheet management and ability to capitalize on falling interest rates. The savings could support various initiatives, including:
- Share repurchase programs
- Strategic acquisitions
- Business development opportunities
Flutter's current financial position shows strength, with:
- Leverage ratio of 2.4x (as of September 30, 2024)
- Reduction from 3.1x in December 2023
- Within target range of 2.0-2.5x
Fitch Ratings recently affirmed Flutter's "BBB-" grade with a "stable" outlook, citing:
- Strong free cash flow capabilities
- Commitment to reducing leverage
- Expected revenue growth in low double digits for 2025
- Projected EBITDA margins reaching 20% by 2027
The company's improving U.S. operating profitability and growing EBITDA support a positive outlook, despite recent investments in share repurchases and acquisitions in Italy and Brazil.