Inspired Entertainment has secured a private deal of $363 million in a debt refinancing plan due by 2030.
As well as the multi-million dollar deal, Inspired Entertainment has also completed a new $24 million revolving credit facility. The combination of these two deals will replace the firm’s old debt and offer it more financial flexibility over the next few years, with the first deal due by June 9, 2030.
The $363 million deal has a variable interest rate, with changes calculated on a benchmark rate (SONIA) and an extra percentage between 5.5 and 6%. The second deal also features a variable interest rate (SONIA plus 3.25% to 3.75%), due by December 9, 2029.
Both interest rates are subject to change, depending on Inspired Entertainment’s debt levels. The company’s existing debts were due in 2026, so this gives the gaming company more time to square its finances.
Where did Inspired Entertainment’s debts come from?
The new deals are designed to cover not just existing debts but also $20 million worth of outstanding loans from its old credit facility, fees related to refinancing, and general company outgoings. It follows a tough quarter for Inspired Entertainment, off the back of some similarly tough years for the company.
The most recent quarter saw revenue fall by 3% when compared to the same period from the year before. However, things appear to be improving, with adjusted earnings before interest, taxes, depreciation, and amortisation highlighting an increase of 18%.
This is thought to be due to the ‘Interactive’ gaming segment doing particularly strong performance, with revenue in that area along increasing by a mighty 49%, hitting $12.1 million. This has helped patch gaps left by its virtual sports and other gaming areas.
Other areas Inspired Entertainment is seeking to invest in include partnering with bet365 in the UK (the second major deal for the betting company) for a new roulette game and cementing hospitality partnerships with Moto Hospitality, Caesars Entertainment, and Ivy Casino.
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