Australian wagering giant Tabcorp announced it has secured agreement from its bank lenders for a waiver of leverage and interest cover covenants in response to the financial impact of the Covid-19 pandemic.
The waiver is related to its Syndicated Facility Agreement, representing facilities of A$2.2 billion (US$1.6 billion), according to a company filing.
As of May 15, 2020, Tabcorp had $820 million of available liquidity. The company notes that other than a US Private Placement of A$171.5 million, and a working capital facility of A225.8 minion, there are no other debt maturities until April 2022.
“We welcome the support of our syndicate banks during this challenging period,” said Tabcorp managing director and CEO, David Attenborough. “The waivers complement recent actions we have taken to preserve our liquidity and mitigate the financial and earnings impacts of Covid-19.”
The global casino gaming equipment industry was estimated at $11.02 billion in 2019, and is expected to hit $13.19 billion by 2027, registering a CAGR of 5.5 percent from 2021 to 2027, according to a report by Allied Market Research.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.