GiG eyes potential M&A with SEK450m bond issue for corporate purposes

Gaming Innovation Group (GiG) has issued SEK450m (€44m) in senior secured floating rate bonds to be traded on the Nasdaq Stockholm stock exchange from tomorrow (8 December).

GiG said the net proceeds of the bond issue would be applied towards the repurchase of all existing bonds, including any premium, interest or related expenses, and for “general corporate purposes, including acquisitions”.

“In addition to a solid operating cash flow, external funding is facilitating acquisitions of affiliate markets, paying off existing working capital facilities and for general corporation purposes,” said the supplier on its bondholder information page. 

The company has issued a total of 1,800 bonds for an initial nominal amount of SEK250,000 each, which were sold at par and are due on 11 June, 2024.

GiG may also issue subsequent bonds up to an aggregate nominal amount of SEK550m, provided the bond conditions as set by the company are met.

The bonds carry interest set at a floating rate of the sum of three months’ STIBOR (Stockholm Interbank Offered Rate – a reference rate based on the average interest rates of several active Swedish banks), with a STIBOR floor at 0%, plus an 8.5% margin per year, with interest payments to be made quarterly.

Seven subsidiaries of GiG’s parent company will act as guarantors for the bonds, including Gaming Innovation Group, Inc, Innovation Labs Ltd, iGamingCloud Ltd, MT SecureTrade Ltd, GiG Central Services Ltd, Rebel Penguin Aps and iGaming Cloud N.V.

The bond issue was introduced in May and authorised by GiG’s board of directors on 9 June 2021, as part of the company’s broader financial strategy.

GiG said the strategy built upon values such as strict cost control, the reduction of debt, a conservative approach to amortisation on acquired affiliates and capitalised expenses, and a reduction in non-marketing operating expenses to help the business achieve bottom line earnings.

GiG last month reported revenue of €17.0m in Q3, up 19.7% annually.

The firm’s media services segment brought in most of the revenue at €11.2m, with platform services generating a further €5.7m and sports betting services making up the remainder.