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NEW YORK - Inspired Entertainment, Inc. (NASDAQ: INSE), a prominent B2B gaming technology provider with a market capitalization of $215.3 million, has finalized a private placement of £270 million in senior secured notes due 2030, alongside a new £17.8 million revolving credit facility. This move, completed today, aims to refinance existing debt and support general corporate functions. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 70% and trades at an attractive P/E ratio of 3.2x.
The 2030 Senior Secured Notes carry a floating interest rate tied to SONIA with a margin between 550 and 600 basis points, contingent on the senior secured net leverage ratio of the Company’s subsidiaries. These notes are slated to mature on June 9, 2030. The concurrent Revolving Credit Facility, maturing on December 9, 2029, also references SONIA for interest calculations, adding a margin of 325 to 375 basis points based on the same leverage ratio. InvestingPro analysis indicates the company maintains healthy liquidity with a current ratio of 1.43, suggesting strong ability to meet short-term obligations.
Proceeds from the offering are earmarked for redeeming Inspired’s £235 million senior secured notes due June 1, 2026, repaying £15 million loans under a previously existing revolving credit facility, covering refinancing costs, and for general corporate purposes.
Barclays Bank plc, HG Vora Special Opportunities Master Fund, Ltd., BSE Investments, Ltd., and HG Vora Opportunistic Capital Master Fund III A LP are the purchasers of the 2030 Senior Secured Notes. Barclays Bank plc provided the Revolving Credit Facility. Stifel acted as the financial advisor and exclusive debt financing agent, while Davis Polk served as the legal advisor to Inspired Entertainment.
Inspired Entertainment, with operations in about 35 jurisdictions, supplies gaming systems and content for roughly 50,000 gaming machines and offers virtual sports products, interactive games, and amusement solutions. With annual revenue of $295.2 million, the company appears slightly undervalued according to InvestingPro Fair Value analysis. For deeper insights into INSE’s financial health and growth potential, including 8 additional ProTips and comprehensive valuation metrics, explore the full Pro Research Report available on InvestingPro. This press release is based on a press release statement and should not be construed as an offer to sell or a solicitation of an offer to buy any securities. The securities mentioned have not been registered under the Securities Act of 1933 and are not available for sale in the United States without registration or an exemption from registration requirements.
In other recent news, Inspired Entertainment reported its Q1 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.13, against a forecasted loss of $0.04. Despite this positive earnings surprise, the company fell short on revenue projections, reporting $60.4 million compared to the anticipated $68.4 million. The company’s interactive business segment experienced substantial growth, with a 49% increase in revenue. Inspired Entertainment also launched V-Play Football Brazil in partnership with Kaizen Gaming, marking a significant expansion into the Latin American market. The game, which features official Brasileirão Betano branding, is available on the Betano platform in Brazil. Additionally, Inspired Entertainment delivered 5,000 Vantage terminals to William Hill, bolstering its gaming segment. The company is also navigating challenges such as regulatory changes in Brazil, which have impacted its virtual sports segment. Looking ahead, Inspired Entertainment anticipates a recovery in its virtual sports market in the latter half of the year, driven by new content and market stabilization.
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