Cash-focused Gamesys sanctions £40m debt repayment
Issuing a corporate filing, the governance of Gamesys Group Plc has confirmed that it has sanctioned a £40 million repayment of the firm’s GBP corporate debt, rebalancing the firm’s accounts and allowing for stronger cash generation.
The approved transaction sees Gamesys governance lower its long-term GBP corporate debt by 15%, resulting in an outstanding debt reduction of 7% for its combined GBP and EURO tranches.
Gamesys governance underlined that the significant debt repayment forms part of the operator’s long-term strategy, delivering a better cash-generating enterprise for its investors.
In its latest trading statement, Gamesys reported that its corporate net debt figure stood at £485 million, reflecting a net leverage ratio of 3x versus company EBITDA.
“As we’ve stated previously, a key strategic goal for the board is to have our long-term leverage ratio in-line with our peers, which is currently in the range of one to two times adjusted earnings before interest, tax, depreciation and amortisation,” commented CFO Keith Laslop on the transaction note.
“Our significant cash generation allows us to rapidly de-lever and today’s paydown is an important first step in attaining that goal,” Laslop adds.
Gamesys governance is set to publish its full-year earnings results on Tuesday 17 March. Closing January trading, Gamesys issued a trading notice detailing confidence that the firm’s earnings would reflect the upper end of market expectations
Source: SBC News
