LeoVegas gains financial flexibility via issue of unsecured bonds
LeoVegas has disclosed the successful issuance of senior unsecured bonds of SEK 500m in 2020 under a framework of up to SEK 800m.
The online gambling group first announced this intention in November 2020, suggesting that it would enable the group to deliver on its expansion strategy amid a “focus on regulated markets and markets soon to become regulated”.
Alongside this, LeoVegas adds that it has also mandated Swedbank to investigate the possibility of increasing the amount of senior unsecured bonds outstanding with a minimum size of SEK 100m.
The proceeds of such a potential subsequent bond issue would contribute to an optimal capital structure and increased financial flexibility, the group says.
LeoVegas adds that, in conjunction with its initial issue of senior unsecured bonds during 2020, the leverage ratio of net debt to adjusted EBITDA shall not, over the long term, exceed 1.0x.
“This leverage target is reaffirmed and the company continues to be below the leverage target with good headroom with a leverage ratio of 0.2x as of 30 June 2021,” the company states.
However, LeoVegas may, under certain circumstances, choose to exceed this level during short time periods in connection with larger acquisitions or other strategic initiatives.
“We will strengthen the company’s financial flexibility and diversify our financing with the combination of a bond and new bank loans,” Gustaf Hagman, group CEO of LeoVegas, said upon detailing the firm’s initial intention.
“This enables us to continue to deliver on our expansion strategy where we focus on regulated markets and markets soon to become regulated. Further, we continuously evaluate strategic and complementary acquisitions that may fit into the LeoVegas Group.”