Betsson set to raise SEK1bn with oversubscribed bond placement

20 September 2019

Gambling operator Betsson has placed SEK1bn (£82.3m/€93.4m/$103.3m) in senior unsecured bonds, attracting interest from a number of large institutional investors throughout the Nordic region.

The bonds, placed under a framework of SEK2.5bn, have a tenor of three years and will mature on 26 September, 2022. Betsson intends to apply for listing of the bonds on the corporate bond list of Nasdaq Stockholm.

Confirmation of the placement comes after Betsson earlier this month set out plans to issue a new senior unsecured bond with an expected initial minimum volume of SEK500m to support its ongoing growth and expansion strategy.

“There has been a strong interest from a broad range of investors in the issue, which was heavily oversubscribed,” Betsson’s chief financial officer Martin Öhman said.

“We are also happy to see that the interest from large institutional investors throughout the Nordics has been much stronger than back in 2016 when issuing our first bond. It shows that we have the market’s support in our long-term strategy.”

Betsson has also announced the results of a tender offer for the holders of its outstanding senior unsecured floating rate bonds due to mature on 28 November this year and outstanding amount of SEK1bn.

The operator said that the holders of these bonds have accepted the tender offer, representing a total nominal amount of SEK754m. Betsson will now complete the offer, with the price for the bonds in the offer amounting to 100.7% of the nominal amount, with settlement due to occur on 26 September.

Meanwhile, Betsson has said it intends to exercise its right to make a voluntary early redemption of the bonds not being tendered in the tender offer. Bonds in the early redemption will be redeemed at a price equal to 100% of the nominal amount. Early redemption is expected to occur on 17 October.