LeoVegas AB has mandated SEB and Swedbank as joint bookrunners to arrange investor meetings commencing on 30 November 2020 to explore the conditions to issue a senior unsecured bond with an expected volume of SEK 500m, within a framework of SEK 1,200m with a tenor of three years. Subject to market conditions, a capital markets transaction may follow. The proceeds from the potential bond issue will be used to facilitate LeoVegas’ expansion strategy, refinance existing debt and for potential acquisitions. In conjunction with the transaction, LeoVegas also enters into a new three-year revolving credit facility agreement of EUR 40m.
Financial targets – leverage target introduced
In conjunction with the transaction, LeoVegas publishes that the leverage ratio (net debt to adjusted EBITDA) shall not, over the long term, exceed 1.0x. However, LeoVegas may, under certain circumstances, choose to exceed this level during short time periods in connection with, for instance, larger acquisitions or other strategic initiatives.
LeoVegas’ existing long-term financial targets are unchanged which include:
- Long-term organic growth that outperforms the online gaming market
- Long-term EBITDA margin of at least 15 percent, under the assumption that 100% of the revenue is generated in locally regulated markets where gaming tax is paid
- To pay dividend, over time, of at least 50 percent of the profit after tax
“With this, we ensure a long-term and stable financing for LeoVegas. We 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”, Gustaf Hagman, Group CEO
LeoVegas repurchases bonds
Reference is made to LeoVegas AB’s (publ) (“LeoVegas”) senior unsecured bonds with ISIN SE0015242854 (the ”Bonds”) and the terms and conditions for the Bonds (the ”Terms and Conditions”).
As announced by LeoVegas by way of a press release on 23 September 2022 and by a notice regarding a de-listing of the shares of LeoVegas from Nasdaq Stockholm to the bondholders and the agent the same day, bondholders have, as a result of the de-listing, had a right to request that LeoVegas repurchases Bonds during a certain time period.
The repurchase offer expired yesterday on 28 November 2022 and has thereby been declared concluded. Bondholders have, in connection with the repurchase offer, accepted repurchases of Bonds in a total nominal amount of SEK 115 million. Together with the previous repurchase offer, which expired on 14 November 2022, LeoVegas thereby repurchases Bonds in an aggregate nominal amount of SEK 318.75 million.
The price for repurchased Bonds is 101.00 per cent of the nominal amount and will be paid together with accrued and unpaid interest for the Bonds on the settlement date, which will occur on 2 December 2022.
LeoVegas repurchases bonds
Reference is made to LeoVegas AB’s senior unsecured bonds with ISIN SE0015242854 (the ”Bonds”) and the terms and conditions for the Bonds (the ”Terms and Conditions”).
As announced by LeoVegas by way of a press release on 8 September 2022 and by a notice regarding a Change of Control Event to the bondholders and the agent the same day, bondholders have, as a result of the change of control, had a right to request that LeoVegas repurchases Bonds during a certain time period.
The repurchase offer expired yesterday on 14 November 2022 and has thereby been declared concluded. Bondholders have, in connection with the repurchase offer, accepted repurchases of Bonds in a total nominal amount of SEK 203.75 million. The price for repurchased Bonds is 101.00 per cent. of the nominal amount and will be paid together with accrued and unpaid interest for the Bonds on the settlement date, which will occur on 22 November 2022.
The abovementioned notice to the bondholders and the agent and further information regarding the terms and conditions for the repurchase offer are available at the company’s website, under Investor Relations.
LeoVegas launches collaboration with researchers at Karolinska Institutet to prevent problem gambling
The igaming company LeoVegas Group announces a four-year research project in partnership with the Karolinska Institutet’s Department of Clinical Neuroscience, Stockholm, one of the world’s leading medical universities. The research will aim to improve understanding of how to identify signs of problem gambling and, ultimately, prevent it. LeoVegas Group is providing funding and raw data to the research team, who will begin the project in autumn 2022.
LeoVegas Group and Karolinska Institutet’s Department of Clinical Neuroscience will launch a research project to increase understanding of gambling problems and improve methods for identifying and preventing them by studying the Group’s customer data. The joint project is being funded by LeoVegas Group and is part of the company’s efforts to inform the debate about responsible gaming by providing research to support evidence-based discussions, and ultimately lead to a reduction in the harmful effects of gambling.
Philip Lindner, an associate professor and leader of the university’s research unit with expertise in clinical and applied research in digital psychiatry will lead the project. The university’s research unit aims to develop, evaluate, and implement new tools for mapping and treating mental illness. The collaboration guarantees the researchers academic freedom, and the research will shortly be submitted for ethical review.
Gustaf Hagman, CEO of LeoVegas Group, said “Responsible gaming is an important priority for LeoVegas Group. We believe that our industry must take greater responsibility for contributing knowledge and facts about gambling-related problems, and learning how to minimise these issues. We are proud to be partnering with Karolinska Institutet to carry out this valuable research and hope that decision-makers and the igaming industry will be able to apply the findings in order to support more responsible gambling.’’
Philip Lindner, associate professor and research group leader at Karolinska Institutet, added “As researchers at universities, we have a duty to spread knowledge that is useful to society. This collaboration gives us a unique opportunity to study data that hasn’t previously been available for research. We hope that the collaboration will lead to new ways of identifying and helping players at risk, at the earliest possible stage.”
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