In conjunction with the initial issue of senior unsecured bonds during 2020, the company published that the leverage ratio (net debt to adjusted EBITDA) shall not, over the long term, exceed 1.0x.
This leverage target is reaffirmed and the Company continues to be below the leverage target with good headroom with a leverage ratio of 0.2x as of 30 June 2021. However, LeoVegas may, under certain circumstances, choose to exceed this level during short time periods in connection with, for instance, larger acquisitions or other strategic initiatives.
The proceeds from the potential subsequent bond issue will contribute to an optimal capital structure and increased financial flexibility.
The online gambling group first announced this intention in November 2020, suggesting that it would enable the group to deliver on its expansion strategy amid a “focus on regulated markets and others soon to become regulated.”
“We will strengthen the company’s financial flexibility and diversify our financing with the combination of a bond and new bank loans,” Gustaf Hagman, group CEO of LeoVegas, said upon detailing the firm’s initial intention.
“This enables us to continue to deliver on our expansion strategy where we focus on regulated markets and markets soon to become regulated. Further, we continuously evaluate strategic and complementary acquisitions that may fit into the LeoVegas Group,” Hagman concluded.
Source: GMB
