Acroud Delays Bond Interest Payment via Standstill with Holders

The fast-moving challenger in the space of iGaming affiliation and B2B SaaS solutions, Acroud, confirmed it postponed interest payment on outstanding bond loans until further notice.

Restructuring Effort Impacts Bonds Interest Payment

Confirmed this week, the announcement affects SEK 225 million senior secured bonds with an interest payment due on October 7, 2024. The main reason for Acroud’s decision is an ongoing restructuring effort that seeks to strengthen the company’s financial position and address certain financial challenges.

Besides the postponement of the interest payment on its outstanding bond loan, the company confirmed it has entered into a standstill agreement with holders of the bonds. Such was the case for approximately 54.5% of the bondholders. Per the standstill agreement, the holders won’t take action under the established Terms and Conditions in light of the interest payment postponement.

“Pursuant to the terms and conditions of the Bonds, Acroud shall make quarterly interest payments to the bondholders. According to the Terms and Conditions, the next interest payment for the Bonds shall be made on 7 October 2024. Acroud hereby announces that it, due to its current financial situation and as a result of the ongoing discussions with its stakeholders to find a long-term viable solution for the Company, has decided to postpone the Interest Payment due on 7 October 2024,“

reads a statement released by Acroud

The Postponement Comes amid Restructuring Efforts

Back in August, Acroud released its financial report for the second quarter of 2024. The figures within the report pointed to a revenue decline of 8%, considering the company’s revenue halted at €9.5 million ($10.5 million).

Not unexpectedly, adjusted EBITDA also marked a dip in the second quarter. Per Acroud’s Q2 2024 financial update, adjusted EBITDA halted at €1.47 million ($1.63 million), a result that pointed to a 9% year-over-year decrease.

At the time of the announcement, Robert Andersson, Acroud’s CEO, revealed that while challenges can be encouraging, the company is still “not achieving the accelerated growth we aspire to.” The executive blamed the company’s financing structure, explaining that it “limits the funds available for reinvestment into growth initiatives due to the cost of our bond.” Andersson confirmed that restructuring and refinancing will be key objectives for Acroud on its future growth path.

Focusing once again on the latest announcement, it certainly reaffirms the company’s dedication to resolving potential financial challenges. Acroud confirmed that it is seeking a “long-term viable solution,” that can propel its financial liquidity and strengthen its position, allowing it to manage upcoming maturity of bonds.

Last but not least, the company admitted that the implementation of such a solution would be contingent on approval from stakeholders and holders of bonds and may include changes to terms and conditions. Finally, Acroud vowed to resolve the situation in the near future and release an update on the matter.