News

CMS advises on loan to Fortuna Entertainment Group

Law firm CMS has advised Česká spořitelna, a.s. on a EUR 50 million loan to Central European betting operator Fortuna Entertainment Group N.V. (“Fortuna”). The loan will be used to refinance Fortuna’s existing bank debt, for dividend and share premium distribution and for investments into product development in the area of sports betting.

The financing is made up of three credit facilities: an amortising loan of up to EUR 25 million, a non-amortising loan of up to EUR 20 million and a revolving facility of up to EUR 5 million. The loan is secured by shares of Fortuna’s subsidiaries in the Czech Republic, Slovakia and Poland, by bank accounts and Fortuna’s trademark. The 6-year multicurrency credit facility was executed on June 4, 2013.

CMS partner Mark Segall, who led the deal, commented: “We were pleased to have assisted Česká spořitelna on a transaction that was significant for all parties involved. The transaction is an outstanding example of how Czech banks can benefit from our English-law capability in Prague and our geographical presence across Europe when supporting successful Czech companies that have invested in the region such as Fortuna.”

The Fortuna Entertainment Group was established in 2009 and is the largest Central European betting operator. Originally a Czech company, it has grown into a holding company over time, and it also operates on the Slovak, Polish and Hungarian markets. Fortuna is majority owned by Penta Investments and is listed on the Warsaw Stock Exchange (FORTUNA-FEG).

The CMS team advising Česká spořitelna consisted of partner Mark Segall, senior associate Elitsa Ivanova and trainee solicitor Anushka Nayak (English law), Prague Head of Banking and Finance Pavla Křečková, associate Miroslav Kovář, lawyer Táňa Skalová (CMS Prague), partner Tomasz Jedwabny and associate Anna Tomalska-Wcislo and lawyer Paula Hryckowiak (CMS Warsaw), partner Peter Šimo and associates Michal Hulena and Dominika Bajzáthová (CMS Bratislava) and partner Eduard Scheenstra and associate Julie van der Touw (CMS Amsterdam).


For further information, please contact:

Erik Werkman
CMS
T +420 296 798 701
E erik.werkman@cms-cmck.com