Bookmaker Ladbrokes said it had signed a £1.35 billion (€1.8 billion) facility with banks to fund its proposed merger with Gala Coral.

The new facility has three tranches and will be available for drawing subject to completion of the merger, the company said.

Ladbrokes and Gala Coral sealed an all-share merger deal in July, creating a £2.3 billion (€3.1 billion) betting group that will seek to build on its dominance of Britain’s high streets to expand its online business.

As a result of the financing, Gala Coral’s debt will not be transferred into the new company, named Ladbrokes Coral, at completion of the merger, Ladbrokes said on Friday.

The company had cut its full-year dividend to 3 pence from 8.9 pence per share in July to help fund the deal.

Reuters