Ladbrokes has signed a £1.35b facility to provide financing for its proposed merger with Coral.

The new facility with a group of banks has three tranches, including £600m term facility to be repaid in a year, with an extension option to January 2018; £400m revolving credit facility until October 2020; and a £350m revolving credit facility until June 2019.

As a result of this financing, the Gala Coral debt comprising £315m Senior Secured Note 2018, £275m Secured Note 2019 and £812m Senior Secured Facilities 2018, will not be transferred into the enlarged Ladbrokes Coral group at completion of the £2.3b merger, which was revealed in July.

Chief financial officer Ian Bull believes it will provide significant liquidity to the enlarged group after the merger.