Online gaming player acquisition services provider Gambling.com Group announced Tuesday the closing of a new credit facility with Wells Fargo Bank in the principal amount of $50 million.
Credit facilities are a type of pre-approved loan that allows the borrower to borrow money on an ongoing basis over an extended period. Gambling.com’s credit facility is expected to be used for general corporate purposes, to settle deferred consideration, and to fund potential growth opportunities.
Under the terms of the deal, the agreed amount will be broken down to a $25 million revolving credit facility and a $25 million term loan facility. The new credit facility matures on March 19, 2027, and, subject to approval by Wells Fargo, may be incrementally increased by up to $10 million in the aggregate.
Elias Mark, Chief Financial Officer of Gambling.com Group, commented: “We have established a track record of successful execution on our growth initiatives that are delivering consistently strong revenue, Adjusted EBITDA and cash flow growth.”
“This new credit facility enhances our already strong balance sheet and liquidity thereby providing additional financial flexibility as we pursue both organic and inorganic growth opportunities that can further scale the business and generate incremental value for our shareholders,” he added.
The interest rate on the credit facility is as follows:
- Base Rate Loans: (i) the highest of (a) Prime Rate, (b) Federal Funds Rate plus 0.50%, and (c) Adjusted Term SOFR for one-month tenor plus 1.00%, (ii) plus an applicable margin of 2.50% per annum (the “Applicable Margin”)
- Term SOFR Loans: SOFR Rate plus 0.10%, plus the Applicable Margin
- Eurocurrency Rate Loans: Adjusted Eurocurrency Rate, plus the Applicable Margin
- Daily Simple RFR Loans: Adjusted Daily Simple RFR rate, plus the Applicable Margin
Founded in 2006, Gambling.com Group is a performance marketing company and a provider of digital marketing services active in the online gambling industry, primarily operating in the United States and Ireland. Through its proprietary technology platform, the group publishes a portfolio of premier branded websites including Gambling.com, Bookies.com, Casinos.com and RotoWire.com.
Original article: https://www.yogonet.com/international/noticias/2024/03/22/71375-gamblingcom-group-secures-50m-credit-facility-to-fund-potential-growth-opportunities
