Issues a secured bond
Cherry AB (publ) announces that the company has decided to issue a four-year senior secured bond in the amount of EUR 50 million with maturity on 11 July 2020. The net proceeds will be used to partly finance the acquisition of 49
percent of the shares in ComeOn Malta Ltd (tranche one) with an option to acquire the remaining 51 percent (tranche two). The acquisition of 49 percent of the shares in ComeOn is expected to be finalized during July, 2016.
The bond will give a floating rate coupon of Euribor 3 months + 9.00 percent with quarterly payments. The total framework amounts to EUR 200 million. Cherry intends to apply for listing of the bond on Nasdaq Stockholm within 30 days.
The bond was successfully placed with over 70 investors throughout the Nordic region.
The bond financing compared with other financing alternatives gives Cherry a freedom to continue take an active role in the consolidation of the industry and maintain current dividend policy.
”We are pleased with the large interest among Nordic investors for the bond issue, despite challenging market conditions. The access to the corporate bond market demonstrates investors’ trust for Cherry, the acquisition of ComeOn and our business model. The bond issue enables Cherry to complete the acquisition of the initial 49 per cent of ComeOn”, says Fredrik Burvall, CEO Cherry.
The final and total consideration for the shares in ComeOn will also be paid with a combination of newly issued shares and cash. The cash part is to be financed with an expansion of the corporate bond, and the price for the new share issue will be calculated as the volume weighted average share price during the fifteen trading days following Cherry’s announcement to exercise the option to acquire the remaining 51 percent in ComeOn (tranche two). The option can be exercised during the period October 1, 2016 to December 31, 2016. The total consideration can be a maximum of EUR 280 million on a debt free basis.
ABG Sundal Collier has acted as financial advisor and sole bookrunner for Cherry in connection with the bond issue. Roschier Attorneys has acted as legal advisor.
For further information, please contact:
Fredrik Burvall, CEO Cherry AB (publ), telephone +46 8-514 969 52, +46 709 279 632, Email: fredrik.burvall@cherry.se Gunnar Modalen, Head of Investor Relations & Communication Cherry AB (publ), telephone +46 702 802 636, gunnar.modalen@cherry.se
Cherry in brief
Cherry is a Swedish gaming company established in 1963 specialized in online casinos and lotteries (www.CherryCasino.com, www.EuroLotto.com, www.EuroSlots.com, www.SpilleAutomater.com, www.NordicSlots.com, www.NorgesSpill.com, www.SveaCasino.com, http://www.SveaCasino.com, www.Sunmaker.com and www.SunnyPlayer.com), affiliate business through Game Lounge and games development (www.Yggdrasil.com), through subsidiaries in Malta. Cherry is the market leader in casinos in restaurants and nightclubs in Sweden. Cherry employs around 750 people and has more than 3,800 shareholders. The Company's B-shares are listed on AktieTorget.