LeoVegas returns to bond market after long period of absence
LeoVegas AB has announced its latest goal: the issuing of a brand new senior unsecured bond that carries a minimum value of SEK 500 million (€50m) and maximum liquidity of SEK 1.2 billion (€117m). SEB and Swedbank have been confirmed to be the joint bookrunners appointed by LeoVegas in order to facilitate the transaction for institutional investors who will be able to access terms and conditions of the unsecured bond from 30 November. The bond was issued in a bid to make an expansion strategy smoother and easier, refinancing of existing debt and options for potential acquisitions.
In an update for investors, LeoVegas’ governance said that its long-term corporate goals still remain the same, as the firm prioritizes ‘organic growth that outperforms the online gaming market’. Coinciding with its most recent bond transaction, LeoVegas has also entered into a new three-year revolving credit facility agreement for €40 million.
“We will strengthen the company’s financial flexibility and diversify our financing with the combination of a bond and new bank loans. 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.” Said Group CEO Gustaf Hagman.
Core trading objectives see LeoVegas target a long-term EBITDA margin of at least 15%, with 100% of revenues generated from regulated markets where gaming duties are paid. Moreover, LeoVegas specified the importance of its shareholder commitment ‘to pay a dividend, over time, of at least 50% of the profit after tax’.