Inspired Entertainment Finalizes Major Private Placement and Facility
Inspired Entertainment's Financial Milestone
Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE) has taken a significant step forward by announcing a successful private placement of £270 million in senior secured notes due by 2030. This strategic move strengthens the Company’s financial foundation and supports its ongoing growth in the competitive gaming industry. In addition, Inspired has secured a £17.8 million credit facility, further optimizing its capital structure.
Details of the Private Placement
The senior secured notes carry a floating interest rate, set equal to SONIA plus a spread of 550 to 600 basis points, determined by the senior secured net leverage ratio of Inspired’s subsidiaries, collectively known as the Group. With a maturity date set for June 9, 2030, these notes pave the way for financial flexibility and allow Inspired to refine its operational strategies.
Revolving Credit Facility Highlights
The newly established Revolving Credit Facility, maturing on December 9, 2029, will have a floating interest rate based on SONIA for sterling-denominated borrowings. This facility adopts a margin of 325 to 375 basis points, also contingent on the Group's senior secured net leverage ratio. It supersedes the previous credit facility, which has now been terminated.
Utilization of Proceeds
Inspired plans to utilize the funds generated from the offering of the 2030 Senior Secured Notes for a series of strategic initiatives. Primarily, they aim to redeem existing senior secured notes worth £235 million that are due in 2026. Additionally, they intend to pay off £15 million in loans that remain from an earlier £20 million credit facility. The funding will also cover associated fees and expenses related to these refinancing activities.
Background on Investors and Advisors
The 2030 Senior Secured Notes were acquired by several noteworthy investors, including Barclays Bank plc, HG Vora Special Opportunities Master Fund, Ltd., and others. Barclays Bank plc is also responsible for providing the Revolving Credit Facility. Furthermore, Stifel has played a crucial role as financial advisor and exclusive debt financing agent, while Davis Polk serves as the legal advisor for Inspired.
About Inspired Entertainment, Inc.
Founded with a vision of delivering high-quality content and technology solutions, Inspired has established itself as a trusted leader in the global gaming industry. The Company supports various operators across multiple sectors, including regulated gaming, betting, lottery, and leisure. With an impressive portfolio, Inspired operates in approximately 35 jurisdictions and provides entertainment through an extensive network of over 50,000 gaming machines and multiple online platforms.
Diverse Product Offering
Inspired’s products are designed to appeal to a broad audience, allowing operators to tap into new revenue opportunities. Their gaming solutions include virtual sports, interactive games, and amusement entertainment options, providing engaging experiences tailored to the demands of each market.
Future Outlook and Growth Potential
As Inspired continues to innovate and expand its offerings, the completion of this private placement and credit facility positions the Company to capitalize on future opportunities. By strengthening its financial resources, Inspired is poised to enhance its market presence and drive further growth within the gaming and entertainment sectors.
Frequently Asked Questions
What are the main financial outcomes of Inspired Entertainment's announcement?
Inspired has completed a £270 million private placement of senior secured notes and secured a £17.8 million credit facility, strengthening its financial position.
How will Inspired utilize the proceeds from the senior secured notes?
Funds will be used to redeem existing senior secured notes, repay loans, cover refinancing costs, and support general corporate purposes.
Who were involved in the financing?
The notes were purchased by prominent investors including Barclays Bank plc and HG Vora, with Stifel acting as the financial advisor.
What type of products does Inspired offer?
Inspired provides gaming content, technology, and services for gaming, betting, lottery, and leisure activities, appealing to diverse player segments.
What is the future outlook for Inspired Entertainment?
The company aims to leverage its strengthened financial resources to pursue growth opportunities and innovate further in the gaming industry.
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