LeoVegas has announced the successful issuing of senior unsecured notes for SEK 500 million in 2020, as part of a larger framework worth SEK 800 million.
The online gambling company initially revealed this plan in November 2020, claiming that it would allow it to carry with its expansion strategy while focusing on “regulated markets and markets soon to become regulated.”
LeoVegas has also asked Swedbank to look into the prospect of expanding the amount of senior unsecured bonds outstanding, with a minimum size of SEK 100 million.
According to the group, the revenues of such a hypothetical later bond offering would contribute to a more appropriate capital structure and financial flexibility.
LeoVegas further says that the leverage ratio of net debt to adjusted EBITDA would not exceed 1.0x in the long run when it first issues senior unsecured bonds in 2020.
“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 choose to exceed this level in limited instances, such as in connection with larger acquisitions or other strategic initiatives.
When asked about the company’s early intentions, Gustaf Hagman, group CEO of LeoVegas, remarked: “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.”