Betsson Explores New Bond Issuance as Part of Financial Strategy
Stockholm-listed Betsson AB is considering issuing senior unsecured bonds valued at €100 million ($110.46 million) with a three-year maturity.
Financial Restructuring Plans
Betsson has appointed Swedbank AB as the Global Coordinator and Arctic Securities (AS) as the bookrunner for the proposed bond offering. Beginning September 9, 2024, these partners will engage with credit investors to assess market conditions and interest.
If favorable, Betsson may proceed quickly with the issuance. The proceeds will primarily be used to refinance outstanding bonds and support corporate initiatives aimed at growth.
Bond Repurchase and Early Redemption
As part of its refinancing strategy, Betsson has also initiated a repurchase offer for its €100 million senior unsecured bonds, which mature in June 2025.
Bondholders can sell their bonds at 103.25% of the nominal value plus accrued interest, with settlements expected around September 19, 2024.
Additionally, if the bond issuance moves forward, Betsson may redeem any remaining bonds early at the same 103.25% price.
Shift in Market Focus
This financial restructuring follows Betsson’s exit from the U.S. market due to regulatory challenges and intense competition. The company is now focusing on other regions in the Americas.
It continues to operate in Ontario under the Betsafe brand and has recently launched operations in Peru. Betsson is also applying for a license in Brazil, as the country moves towards regulating online sports betting.
Betsson reaffirmed its growth strategy, stating, “We have the ambition to grow faster than the market, organically and through acquisitions,” emphasizing its focus on profitable and sustainable growth.