Online gambling operator LeoVegas AB announced it successfully applied to list its bonds on the Nasdaq Stockholm corporate bond list and around October 7 the debt instruments will commence trading.
LeoVegas Bond Trading
LeoVegas revealed in a press release that the Swedish Financial Supervisory Authority signed the listing prospectus the gambling group prepared to apply for and list its bonds to be traded on the Nasdaq Stockholm.
The Swedish-based gaming group successfully issued subsequent senior unsecured bonds to the amount of SEK200 million ($22 million) last month to increase the amount of debt under its existing framework of SEK800 million ($88 million).
The senior unsecured bonds have a margin based on three-month STIBOR, the average Stockholm Interbank Offered Rate for deposits in SEK, + 550 basis points and were issued above par at a price of 103% of the bonds’ nominal value, which corresponds to a floating rate interest of STIBOR 3m + 395 basis points until the first call date.
LeoVegas noted the new bonds are due in December 2023 and put the total amount of outstanding senior unsecured bonds to SEK700 million ($77 million). The bonds were issued to optimize the company’s capital structure and increase financial flexibility.
In a comment related to the bonds, LeoVegas Group CEO Gustaf Hagman revealed the company was looking to further strengthen its financial flexibility and diversify sources of financing needed to support its expansion strategy into regulated gaming markets and jurisdictions that are about to become regulated soon.
By the time of the issuance of the bonds, LeoVegas revealed its intention to apply for listing on the corporate bond list of Nasdaq Stockholm and the listing prospectus created pursuant to the terms and conditions of the bonds now received the approval by the Swedish Financial Supervisory Authority.
The bond listing and subsequent trading will further support the company’s strategic expansion and will also provide options for potential acquisitions that will facilitate the expansion strategy.
Upcoming Debut in the US
In May, LeoVegas announced plans to make a debut in the US by launching its proprietary platform in New Jersey in the first half of 2022. The debut in the market that is projected to become the largest in the gaming industry was made possible via a deal with Caesars Entertainment that ensured market access for the Swedish gambling group.
LeoVegas, which adopted the market affiliate compliance tool GiG Comply at the end of last year, launched automated responsible gambling messages at the beginning of September 2021. The artificial intelligence (AI)-based messaging system that analyzes player gambling behavior made its debut in the UK via several of the group’s gaming brands.