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GiG Secures Bonds for Redeeming Debt and Expanding Portfolio

GiG Secures Bonds for Redeeming Debt and Expanding Portfolio

Posted on: Dec 07, 2023. Last Updated on: Dec 07, 2023.

Author: Joseph Skelker Expertise: Online casinos, Game tester

GiG issues senior secured bonds worth €75m

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Gaming Innovation Group (GiG) has announced the successful completion of a senior secured bond issuance, totaling €75 million. This issuance involves the division of the total amount into two parts: €45 million and SEK350 million. Additionally, GiG revealed a combined borrowing cap of €100 million in connection with this bond issue.

The company plans to utilize the net proceeds from this bond issue in several ways. Primarily, the funds will be directed towards fully redeeming an existing SEK500 million bond, inclusive of the call premium. Further uses of the funds include partial financing of the KaFe Rocks acquisition and for general corporate requirements.

GiG is also preparing to apply for the listing of this new bond on the Nasdaq Stockholm and the Frankfurt Stock Exchange Open Market. The placement of the bond issue was managed by ABG Sundal Collier and Pareto Securities, serving as joint managers and book runners.

GiG said that the issuances was “well received” by investors in the Nordics, Europe and the US and that there was “participation in the placement from existing as well as new investors.”

Strategic Expansion through KaFe Rocks Acquisition

Last month, GiG confirmed a deal to acquire affiliate KaFe Rocks for €35.0 million, following their earlier acquisition of AskGamblers.com in January.

The acquisition encompasses all of KaFe Rocks’ brands, including notable names such as Time2play.com and USCasino.com. Despite the affiliate’s rebranding to Time2Play Media in June, it continues to operate under the KaFe Rocks umbrella.

Regarding the gambling acquisition, GiG highlighted its strategic importance, particularly in expanding its footprint in the North American market. They anticipate that this move will diversify their business operations, enhance customer and website engagement, and reduce risk.

Moreover, this investment is expected to positively impact GiG Media’s revenues, with forecasts indicating a potential increase to between €125 million and €135 million by 2024.

Record Revenue Growth in Media and Sportsbook Segments

GiG experienced a remarkable upturn in revenue, particularly in the third quarter (Q3), reaching an all-time high of €31.8 million. This growth was primarily fueled by the Media and Platform and Sportsbook divisions, with GiG Media reporting a substantial 49% increase in revenue to €22.5 million.

In the Media segment, GiG’s strategy revolves around referring players via revenue-sharing agreements, aiming to secure recurring revenue streams. This approach has evidently contributed to the segment’s success.

Other notable financial achievements in Q3 include a dramatic surge in net profit, escalating by 2,168.2% to €8.8 million, and a significant rise in EBITDA, which was up by 187.2% at €23.1 million.

In a recent discussion with iGB, GiG’s commercial director, David Bonnefous, shed light on the group’s ambitious growth strategies. These plans include a strong focus on the US market and exploring opportunities in emerging markets.