Embracer Group repays $300m to lenders
Repayment comes from net proceeds received from Take-Two's purchase of Gearbox Entertainment
Embracer Group is a step closer to clearing its debts after paying SEK 3.2 billion ($300 million) on its revolving credit facility.
The group told lenders today that it had made the repayment towards the credit it has borrowed. The full repayment is due by May 2025, and Embracer reported this installment is "in accordance with [the] plan."
The May deadline was part of extension agreements Embracer secured on its credit and loans back in December.
The repayment was made possible by the net proceeds Embracer has already received from the sale of Gearbox Entertainment to Take-Two Interactive. The $460 million deal was announced in March, and completed last week.
The group has also sold Saber Interactive and associated studios for $247 million.
Last month, Embracer's full-year financials showed that the group still held debts of $1.5 billion, but the divestments of Saber and Gearbox are expected to reduce this significantly.
The company is also moving €900 million of its debt into tabletop publisher Asmodee as part of its plans to split into three separate entities.
CEO Lars Wingefors told GamesIndustry.biz earlier this year: "The banks love Asmodee, they know the company has been highly leveraged on their private equity ownership for more than a decade. That amount is basically paying down the debt – not all, but most of the debt – in the remaining Embracer Group, meaning Coffee Stain & Friends and Middle-Earth & Friends."