Playtech Raises €350m to Pay off Convertible Bonds
- Playtech is going to use the proceeds to pay off €297 million worth of convertible bonds.
If you ever wondered whether being a publicly-listed company in this industry is worth it, consider the latest batch of senior secured notes sourced by Playtech. The company just announced this morning that it managed to source €350 million at a rate of 4.25 percent for its BB-rated paper.
According to the gaming and financial Technology Provider Technology Provider A technology provider is an individual, company, or entity that creates, render services and sells software applications or hardware. Currently, there are four types of tech providers which are as followed:Software-as-a-Service (SaaS) – Functioning as a subscription-based licensing and delivery model, SaaS is centrally hosted and may also be referred to as on-demand software. Tech Hardware – Powerful tech providers such as Apple, Oculus Rift, FitBit, and Samsung are examples of tech hardware pro A technology provider is an individual, company, or entity that creates, render services and sells software applications or hardware. Currently, there are four types of tech providers which are as followed:Software-as-a-Service (SaaS) – Functioning as a subscription-based licensing and delivery model, SaaS is centrally hosted and may also be referred to as on-demand software. Tech Hardware – Powerful tech providers such as Apple, Oculus Rift, FitBit, and Samsung are examples of tech hardware pro Read this Term’s public announcement, the net proceeds of the issuance of the new bonds will be used to redeem on maturity all of the outstanding €297 million senior convertible bonds which are due for November 2019.
Shares of the company rallied on the news as any prospect for dilution this autumn is being discounted out of the market. After closing at around 422 pence yesterday, Playtech’s stock is currently trading 2.75 percent higher at 434 pence per share.
Playtech Stock Chart, Source: Yahoo Finance
After the issue of the new debt paper which is due in 2026 and the redemption of the convertible bonds, the only material outstanding borrowings aside from today’s placement will be the €530 million 3.75 percent senior secured notes which are due in 2023.
Playtech also maintains a €272 million revolving credit facility which is currently undrawn.
Cost of Capital Challenges
With interest rates slowly increasing globally, Playtech’s placement today highlights the advantages which publicly-traded brokers have over other industry peers. The company’s solid capital base is underpinning the potential of its financials division at a time when the industry is getting squeezed by tighter regulations.
The news comes after the firm’s financial division TradeTech, reported that its trading volumes for 2018 surpassed $2 trillion. While a business slowdown hit the industry in the latter half of last year, companies who can afford to reach clients in an environment of higher user Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term costs are also set to gain more revenues per client, at least that is what the latest trends in the industry are.
While, as we already mentioned, interest rates are rising, the increase is nowhere near the pockets of savers across Europe. If EU regulators have to blame someone for the increasing risk appetite of retail investors across the continent, the focus should be on the ECB, which maintains rates at zero for a third straight year.
If you ever wondered whether being a publicly-listed company in this industry is worth it, consider the latest batch of senior secured notes sourced by Playtech. The company just announced this morning that it managed to source €350 million at a rate of 4.25 percent for its BB-rated paper.
According to the gaming and financial Technology Provider Technology Provider A technology provider is an individual, company, or entity that creates, render services and sells software applications or hardware. Currently, there are four types of tech providers which are as followed:Software-as-a-Service (SaaS) – Functioning as a subscription-based licensing and delivery model, SaaS is centrally hosted and may also be referred to as on-demand software. Tech Hardware – Powerful tech providers such as Apple, Oculus Rift, FitBit, and Samsung are examples of tech hardware pro A technology provider is an individual, company, or entity that creates, render services and sells software applications or hardware. Currently, there are four types of tech providers which are as followed:Software-as-a-Service (SaaS) – Functioning as a subscription-based licensing and delivery model, SaaS is centrally hosted and may also be referred to as on-demand software. Tech Hardware – Powerful tech providers such as Apple, Oculus Rift, FitBit, and Samsung are examples of tech hardware pro Read this Term’s public announcement, the net proceeds of the issuance of the new bonds will be used to redeem on maturity all of the outstanding €297 million senior convertible bonds which are due for November 2019.
Shares of the company rallied on the news as any prospect for dilution this autumn is being discounted out of the market. After closing at around 422 pence yesterday, Playtech’s stock is currently trading 2.75 percent higher at 434 pence per share.
Playtech Stock Chart, Source: Yahoo Finance
After the issue of the new debt paper which is due in 2026 and the redemption of the convertible bonds, the only material outstanding borrowings aside from today’s placement will be the €530 million 3.75 percent senior secured notes which are due in 2023.
Playtech also maintains a €272 million revolving credit facility which is currently undrawn.
Cost of Capital Challenges
With interest rates slowly increasing globally, Playtech’s placement today highlights the advantages which publicly-traded brokers have over other industry peers. The company’s solid capital base is underpinning the potential of its financials division at a time when the industry is getting squeezed by tighter regulations.
The news comes after the firm’s financial division TradeTech, reported that its trading volumes for 2018 surpassed $2 trillion. While a business slowdown hit the industry in the latter half of last year, companies who can afford to reach clients in an environment of higher user Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term costs are also set to gain more revenues per client, at least that is what the latest trends in the industry are.
While, as we already mentioned, interest rates are rising, the increase is nowhere near the pockets of savers across Europe. If EU regulators have to blame someone for the increasing risk appetite of retail investors across the continent, the focus should be on the ECB, which maintains rates at zero for a third straight year.