Last month, Spanish gaming operator Codere announced that it had worked out a deal to receive some much-needed money to keep it running while it overcame serious pitfalls caused by the coronavirus. At the time, the arrangement was expected to give the company somewhere between $135 and $169.5 million at a relatively accessible 7.25% interest rate. However, now that a final agreement has been reached, the new deal is substantially different from the original, which is both good and bad news for Codere.

First, the good news. According to SBC News, Codere now will have access to about $285.9 million (€250 million) in cash that will help keep the company moving forward for the next year or so. The arrangement comes as Codere reached agreeable terms with its U.S. bondholders, including Blackrock, Dryden Capital, Invesco and Jupiter AM, to approve the financial arrangement. The money will be in addition to an existing $914.5-million long-term note (€800 million) the company current has open, and the new loan was approved by the majority debt-owners behind Codere, including private equity funds Abrams Capital and Silver Point.

Codere had hoped to be able to restructure some of its current debt last month, turning to Bank of America to help negotiate an update to existing debt of about $114.33 million (€100 million). However, at the time, Abrams and Silver Point balked at the idea, which left the global gaming operator in a very precarious situation as bills continued to pile up.

Now for the bad news. Instead of paying its normal and modest 6.75% interest, or even 7.25% interest, the approved interest rate is almost double what it pays on the existing €800-million note. Codere will have to pay 12.75% interest on the new financial injection, which means the company has to make serious improvements if it expects to cover all of its outstanding debt.