Betsson AB placed €90 million in new senior unsecured bonds
Swedish gambling group Betsson AB announced this week that it had successfully placed new senior unsecured bonds in the amount of 90 million euros ($94.23 million).
Interest of institutional investors
The new bonds issued by Betsson AB are in a framework of up to 250 million euros ($261.75 million), have a term of three years and carry a variable interest rate of 3 months Euro Interbank Offered Rate (EURIBOR ) plus 650 bps and a final maturity in June 2025.
Commenting on the announcement, Betsson’s chief financial officer, Martin Öhman, said he was pleased that the company’s new bonds had attracted “great interest…from a wide range of investors”, including Nordic institutional investors and international.
“This demonstrates confidence in our business strategy, which continues to deliver profitable growth and stable cash flow.”
Martin Ohman, Chief Financial Officer, Betsson AB
On June 8, 2022, in preparation for the new bond issue, Betsson offered holders of outstanding floating rate senior unsecured notes in the amount of SEK 1 billion (€93.34 million / 98.06 million) with a maturity date of September 26, 2022, to tender their bonds for redemption by the company at a price of 100.50% of their nominal amount.
Bond settlement will take place on June 23
The gambling group announced that the tender offer to bondholders expired on June 15, 2022 and that bonds in the total amount of 700 million SEK (65.34 million euros / 68, $64 million) have been validly tendered and accepted for settlement by the issuer.
Betsson expects settlement with the bondholders to occur on June 23, 2022, and it will pay 100.5% of the face value of the bond and “accrued and unpaid interest from, but excluding from the previous interest payment date up to and including the settlement date”. of the call for tenders.
For the new bond issue and the previous tender, Nordea bank acted as dealer manager and sole book runner while Swedish legal agency Gernandt & Danielsson acted as Betsson’s legal advisor.
News of the new bonds was released on Wednesday after the market closed when Betsson’s share price was SEK 62.95 ($6.17). After the market opened the next day, the company’s share price fell 3.5% to SEK 60.75 ($5.96) but closed at SEK 61.25 ($6.01). . On Friday, the stock traded in a tight range between 62.30 SEK ($6.11). ) and SEK60.85 ($5.97).
In its report for the first quarter of 2022, Betsson recorded an increase in group revenue of 8%, driven mainly by sports betting operations which accounted for a growth of 45%. Active customers were up 33%, but the bright spots ended with that, with EBITDA down 7%, operating income down 13%, net income down 12% and cash flow down. exploitation of 17%.