Playtech plans €315m bond issue to make acquisitions

12th Nov 2014 08:29

Shares in online gaming software group Playtech retreated after it unveiled plans for a €315m convertible bond issue in order to pursue acquisitions.The FTSE 250 company, which had cash of €402m at the end of September, is offering senior, unsecured convertible bonds due in 2019.It said the proceeds of the offering are intended to be used for pursuing acquisitive and organic opportunities for Playtech."Playtech's board believes there are a number of opportunities ahead that will create significant value to shareholders," it said.The bonds are expected to carry a coupon of 0.125%-0.875% and will be priced at a 25-30% premium to Wednesday's volume weighted average price, representing approximately 10% of the current share issue."Such a move is likely to increase speculation that a sizeable acquisition is close," said broker Shore Capital, noting "the mechanics of a sizeable cash return also works"."It is worth noting that the company have issued debt previously which was later cancelled."