Betsson May Fuel Strategic Realignment with Three €100M Bonds

Stockholm-listed operator Betsson AB announced it is considering issuing new EUR-denominated senior unsecured bonds with a three-year tenor. The potential issue, valued at EUR 100 million ($110.46 million) under a framework of EUR 250 million ($276.15 million), comes as part of the company’s broader financial strategy to refinance outstanding bonds and support general corporate purposes like mergers and acquisitions.

The Company Also Unveiled a Repurchase Initiative

To pursue this opportunity, Betsson has mandated Swedbank AB as Global Coordinator and Arctic Securities AS as a bookrunner. Together, these parties will meet with credit investors from 9 September 2024 onwards to discuss market conditions and interest in the contemplated bond issue. Assuming market conditions are conducive, a capital markets transaction could follow shortly.

The net proceeds of the New Bonds will be used for refinancing outstanding bonds as well as general corporate purposes including acquisitions.

Betsson AB statement

In conjunction with the planned bond issuance, Betsson has launched an offer to repurchase its outstanding EUR 100 million senior unsecured bonds, set to mature in June 2025. The company invited bondholders to sell their bonds at a purchase price corresponding to 103.25% of the nominal amount plus accrued interest. The settlement should occur on or about 19 September 2024.

Betsson has also indicated that should the new bond issuance proceed as planned, it has the right to exercise a call option for early voluntary redemption of any remaining outstanding bonds at the same 103.25% redemption price. The operator hopes this strategic move will mark the next chapter in its journey toward achieving sustainable growth despite rising macroeconomic challenges.

Betsson Is Realigning Its Priorities

This bond issuance and refinancing initiative comes at a pivotal time for Betsson, as the company recently announced its decision to exit the US market. The company’s withdrawal follows a broader trend where several B2B and B2C brands have parted ways with the highly competitive American gaming landscape due to rising competition and regulatory complexities.

Despite its withdrawal from the US, Betsson remains optimistic and will refocus its attention on the rest of the Americas. The company said it would continue to offer its Betsafe brand in Ontario while launching recently in Peru in early 2024. Betsson is also among the operators applying for a license in Brazil, where the country is moving toward regulating its online sports betting market.

We have the ambition to grow faster than the market, organically and through acquisitions. Growth should be generated in a profitable and sustainable manner.

Betsson AB statement

Betsson’s potential new bond issuance and simultaneous repurchase of existing debt highlight the company’s proactive financial management. The group has moved to streamline its operations and improve its balance sheet, preparing to seize opportunities for future acquisitions and other corporate initiatives. As the company awaits market feedback, this bond issuance marks an important next step in Betsson’s evolving financial strategy.