Acroud delays bond interest as financial overhaul looms

Acroud AB (publ) has announced a postponement of its scheduled interest payment due on 7 October 2024 for its SEK 225 million senior secured bonds (ISIN SE0017562481). The delay is part of an effort by the Malta-based iGaming affiliate company to stabilise its financial position as it engages with key stakeholders to develop a long-term solution addressing liquidity challenges and the upcoming bond maturity.

The company revealed that it has secured a standstill agreement with bondholders representing approximately 54.5 percent of the adjusted nominal value of the bonds. Under this agreement, these bondholders have committed to refrain from taking any legal action that could arise from the interest payment deferral. This arrangement is intended to provide Acroud with additional time to finalise a comprehensive financial strategy.

Search for viable restructuring options

Acroud‘s decision to postpone the payment is tied to ongoing discussions with bondholders, major shareholders, and other stakeholders. The company has signalled its intent to seek approval from its bondholders for potential amendments to the bond terms, alongside exploring other options to address its financial obligations. Specific details regarding these amendments or potential transactions remain undisclosed, but Acroud expects to communicate a solution in the near term, contingent on achieving consensus across its stakeholder base.

The interest payment was part of Acroud’s quarterly obligations as set out in the terms and conditions of the bonds. The decision to defer comes amid broader efforts to manage its liquidity constraints while it develops a restructuring plan. The company faces increasing pressure to address the looming bond maturity, requiring swift and decisive action to prevent a breach of financial covenants.

Standstill agreement secured with key bondholders

Acroud has assured investors that it is working closely with its larger bondholders and key shareholders to ensure a resolution is found that will not only improve liquidity but also safeguard the company’s future. While the exact nature of the proposed long-term solution is still under negotiation, the company has indicated that any agreement would likely involve multiple financial maneuvers aimed at securing the firm’s operational stability.

The firm, listed on the Nasdaq First North Growth Market, has been expanding its footprint within the iGaming sector, offering comparison sites and software as a service (SaaS) solutions. Despite growth ambitions, its current financial circumstances underline the challenges companies in the sector face as they balance expansion with fiscal discipline.

Acroud’s leadership, including CEO Robert Andersson (pictured above) and CFO Andrzej Mieszkowicz, have expressed confidence that a mutually agreeable resolution will be reached. As regulatory scrutiny and competition in the sector intensify, stabilising its balance sheet is seen as essential to maintaining its growth trajectory.

Investors and stakeholders will be watching closely for further updates as Acroud works to realign its financial structure. The company expects to provide more clarity once discussions with bondholders and other parties reach a conclusion.

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