Betsson exits the US B2C Market
Betsson will mark September 30th as the end of its B2C business in the USA.Betsson is an online gambling company, producing casino, poker, bingo, sports betting, and...
Betsson plans €100M bond issue for strategic changes
After announcing its exit from the US market, Betsson considers issuing new €100 million bonds with a three-year tenor together with a repurchase.
Betsson is an online gambling company, producing casino, poker, bingo, sports betting, and scratch card websites through more than 20 online gaming brands. Being introduced in Colorado in 2022 and following a 10-year agreement with Dostal Alley Casino, Betsson chose not to expand Betsafe to other states and marked September 30th as the end of its B2C business in the USA.
As a result of this, the company plans to issue €100 million ($110.46 million) bonds under a framework of €250 million ($276.15 million), with a three-year tenor. This means that Betsson will raise money by selling bonds to investors and will, in return, pay back the borrowed amount within 3 years. Bondholders are invited to sell their bonds back to Bettson for 103.25%.
Betsson shows repurchase initiative
To move forward, Betsson has appointed Swedbank AB as the Global Coordinator and Arctic Securities AS as the bookrunner for this bond issue. On September 9, the partners met with investors to discuss the market interest in the new bonds. The more favorable the market conditions, the sooner the bond issue will take place.
Betsson AB stated:
“The net proceeds of the New Bonds will be used for refinancing outstanding bonds as well as general corporate purposes including acquisitions. We have the ambition to grow faster than the market, organically, and through acquisitions. Growth should be generated in a profitable and sustainable manner.”
This decision comes after Betsson’s announcement to exit the US market and instead focus on Ontario, Peru, and potentially Brazil. Despite the focus changes, Betsson remains concentrated on sustainable growth and future opportunities through repurchase. This bond issuance and repurchase are part of Betsson’s strategy to manage its finances and position itself for future success.
FAQs
What is Betsafe, and when was it launched in the USA?
Betsafe is one of Betsson’s online gambling brands, offering sports betting and casino games. It was launched in Colorado in 2022, following a 10-year agreement with Dostal Alley Casino.
Why is Betsson issuing new bonds?
Betsson is issuing new bonds as part of its financial strategy to refinance existing debt and fund future growth opportunities, including acquisitions. This move comes after the company decided to exit the US market and focus on other regions.
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