Embracer Group AB (”Embracer Group”) has, as part of its decision to transform the group into three separate publicly listed entities, which is further described in a separate press release announced today, entered through Asmodee into a financing agreement with JP Morgan, BNP Paribas, SEB, Societe Generale and Swedbank. The financing amounts to EUR 900 million (approximately SEK 10.5 billion) with a maturity up to 18 months and on similar terms as the previous loan. The financing agreement creates a strong foundation for building an optimal capital structure for the three entities.

The financing is an important part of the debt refinancing of Embracer Group following its restructuring program, which was finalized 31 March, 2024. The loan at Asmodee level has a maturity up to 18 months on similar terms as Embracer Group’s existing SEK 8 billion loan with maturity in February 2025. The loan is ringfenced with no recourse to Embracer Group, separating Asmodee’s assets and funds from those of Embracer Group, and it is only secured by Asmodee assets. The loan will be used to refinance Embracer Group’s existing SEK 8 billion loan with maturity in February 2025, and to reduce the revolving credit facilities by SEK 1 billion to SEK 8 billion. The previously communicated mandatory amortization of SEK 2.6 billion until January 2025 is no longer needed due to the repayment of the SEK 8 billion loan with maturity February 2025. The existing revolving credit facilities mature in May 2025.

The intention is to continue to deleverage, through both the expected significantly improved Free Cash Flow in the remaining Embracer Group (excluding Asmodee), as well as the proceeds from the divested assets of Saber Interactive and Gearbox Entertainment in the course of FY24/25.

On a pro forma basis as per LTM[1] December 2023, Embracer Group, including the expected sales proceeds from the divestment of assets from Saber Interactive and Gearbox Entertainment, but excluding Asmodee, will have a Net Debt-to-Adjusted EBIT of around 0.6x. On a pro forma basis as per LTM December 2023, Asmodee will have a Net Debt to Adjusted EBITDA of approximately 3.9x. As part of the transformation and ahead of each separation the full capital structure, including both equity and debt, will be reviewed in Asmodee and “Coffee Stain & Friends” to create the best possible long-term foundation for each entity as a separately listed company.

Please find the separate press release on intention to transform into three standalone publicly listed entities, announced earlier today, embracer.com/investors.

For more information, please contact:
Oscar Erixon, Head of Investor Relations
Tel: + 46 730 24 91 42
Email: oscar.erixon@embracer.com

Arman Teimouri, Head of External Relations
Tel: +46 793 33 05 60
E-mail: arman.teimouri@embracer.com

About Embracer Group
Embracer Group is a global Group of creative and entrepreneurial businesses in PC, console, mobile and board games and other related media. The Group has an extensive catalog of over 900 owned or controlled franchises. With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its eleven operative groups: THQ Nordic, PLAION, Coffee Stain, Amplifier Game Invest, DECA Games, Gearbox Entertainment, Easybrain, Asmodee, Dark Horse, Freemode and Crystal Dynamics – Eidos. The Group has 111 internal game development studios and is engaging more than 12,000 employees in more than 40 countries.

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[1] Last twelve months

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