Gambling.com Group Secures $50 Million Credit Facility to Fuel Growth

This strategic financial maneuver secures $50 million in principal, earmarked for a blend of corporate purposes, including the settlement of deferred considerations and the financing of prospective expansion endeavors.

Structure of the Credit Facility

The credit arrangement is ingeniously structured into two main components: a $25 million revolving credit facility, providing flexible borrowing options, and a $25 million term loan facility, designed for more stable, long-term financing needs. This dual-faceted approach aligns with the Group’s dynamic financial strategy, catering to both immediate and future growth plans. The facility is set to mature on March 19, 2027, with a provision for an incremental increase of up to $10 million, pending Wells Fargo’s approval.

Strategic Commentary from Gambling.com’s CFO

Elias Mark, the Chief Financial Officer at Gambling.com Group, expressed confidence in the company’s robust growth trajectory, underscored by strong revenue, Adjusted EBITDA, and cash flow performance. “This new credit facility enhances our already strong balance sheet and liquidity thereby providing additional financial flexibility as we pursue both organic and inorganic growth opportunities that can further scale the business and generate incremental value for our shareholders,” Mark stated.

His comments reflect a strategic vision aimed at scaling the business and enhancing shareholder value through both organic growth and strategic acquisitions.

Interest Rate Details

The credit facility’s interest rate framework is meticulously designed to adapt to varying market conditions, featuring Base Rate Loans, Term SOFR Loans, Eurocurrency Rate Loans, and Daily Simple RFR Loans. Each category is subject to a Prime Rate, Federal Funds Rate, Adjusted Term SOFR, or Adjusted Eurocurrency Rate, respectively, in addition to a 2.50% per annum applicable margin, ensuring competitive financing costs for the Group.

Our Comment on the Article

The announcement of Gambling.com Group’s new $50 million credit facility with Wells Fargo Bank marks a pivotal development in the company’s financial strategy. This move not only demonstrates the Group’s solid financial health and the trust placed in it by reputable financial institutions but also underlines its ambitious growth plans in the online gaming industry.

With this enhanced financial flexibility, Gambling.com Group is well-positioned to capitalize on both organic and inorganic growth opportunities, potentially setting new benchmarks in the industry and delivering increased value to its stakeholders. This strategic financial initiative is a testament to the Group’s commitment to maintaining a leading edge in the competitive online gaming landscape.