Inspired Announces Private Placement of £270 Million Senior Secured Notes and New £17.8 Million Credit Facility

Rhea-AI Summary

Inspired Entertainment (NASDAQ: INSE) has completed a private placement of £270 million senior secured notes due 2030 through its subsidiary, along with securing a new £17.8 million revolving credit facility. The 2030 Senior Secured Notes will have a floating interest rate of SONIA plus 550-600 basis points, maturing on June 9, 2030. The new revolving credit facility matures on December 9, 2029, with a floating rate of SONIA plus 325-375 basis points. The proceeds will be used to redeem existing £235 million senior secured notes, repay £15 million in outstanding loans, cover refinancing expenses, and support general corporate purposes. The notes were purchased by Barclays Bank plc, HG Vora Special Opportunities Master Fund, BSE Investments, and HG Vora Opportunistic Capital Master Fund III A LP, with Barclays Bank providing the revolving credit facility.

Positive

• Successful refinancing of debt with extended maturity dates to 2029-2030
• Increased credit facility from £20 million to £17.8 million provides continued liquidity
• Strong institutional backing from major financial institutions including Barclays Bank

Negative

• Higher interest rates with floating rate structure exposes company to interest rate risk
• Increased debt load from £235 million to £270 million in senior secured notes

Insights

Financial Analyst

Inspired Entertainment extends debt maturity to 2030, increases borrowing while shifting to floating-rate structure, improving flexibility but adding interest rate risk.

Inspired Entertainment has restructured its debt profile through a £270 million senior secured notes placement maturing in 2030 and a new £17.8 million revolving credit facility. This refinancing extends the company's debt maturity horizon by approximately four years from the previous 2026 maturity, providing enhanced financial flexibility and runway.

The transaction represents a 14.9% increase from their previous £235 million notes, indicating management sought additional capital beyond simple refinancing. The company will use these proceeds to redeem existing debt, pay transaction fees, and fund general corporate purposes.

A notable aspect of this refinancing is the shift to a floating rate structure, with the notes bearing interest at SONIA plus 550-600 basis points based on leverage ratios. This represents a strategic trade-off: while extending maturity provides stability, the floating rate introduces interest expense volatility that wasn't present with fixed-rate debt.

The £17.8 million revolving credit facility replaces their existing £20 million facility, suggesting a slight reduction in immediately accessible liquidity. However, this facility also offers a lower margin (325-375 basis points above SONIA) than the secured notes.

The institutional participation in this placement by entities including Barclays Bank and HG Vora funds suggests reasonable market confidence in Inspired's credit profile. For investors, this refinancing balances positive elements (extended maturity) with potential concerns (increased debt load, floating rate exposure in an uncertain interest rate environment).

NEW YORK, June 09, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today announced the completion of a private placement by its subsidiary of £270.0 million aggregate principal amount of senior secured notes due 2030 (the “2030 Senior Secured Notes”). In connection with the placement, certain of its subsidiaries also entered into a new £17.8 million revolving credit facility (the “Revolving Credit Facility”), which replaces its existing, and now terminated, revolving credit facility.

The 2030 Senior Secured Notes will bear interest at a floating rate equal to SONIA plus a margin ranging from 550 to 600 basis points, based on the senior secured net leverage ratio of the Company’s subsidiaries that form part of the “Group” for the purposes of the 2030 Senior Secured Notes (the “Group”). The 2030 Senior Secured Notes will mature on June 9, 2030. The new Revolving Credit Facility will mature on December 9, 2029, and will bear interest at a floating rate based on SONIA for sterling-denominated borrowings, plus a margin of 325 to 375 basis points, also based on the Group’s senior secured net leverage ratio.

Inspired intends to use the proceeds from the offering of the 2030 Senior Secured Notes to (i) redeem its existing £235 million senior secured notes due June 1, 2026 and repay the £15 million loans outstanding under its existing £20 million revolving credit facility (and any accrued interest and/or fees thereon, in each case), (ii) to pay fees, commissions and expenses related to the refinancing, and (iii) for general corporate purposes. The 2030 Senior Secured Notes were purchased by Barclays Bank plc, HG Vora Special Opportunities Master Fund, Ltd., BSE Investments, Ltd. and HG Vora Opportunistic Capital Master Fund III A LP and the Revolving Credit Facility was provided by Barclays Bank plc. Stifel served as financial advisor and exclusive debt financing agent to the Company and Davis Polk acted as legal advisor to the Company.

The securities referenced herein have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Inspired Entertainment, Inc.

Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social and leisure operators across retail and mobile channels around the world. The Company’s gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue. The Company operates in approximately 35 jurisdictions worldwide, supplying gaming systems with associated terminals and content for approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; interactive games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals. Additional information can be found at www.inseinc.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our ability to bring certain of our products to customers in the various markets in which we operate and execute on our strategic plan, statements regarding expectations with respect to potential new customers and statements regarding our anticipated financial performance. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “continue,” “expect,” “estimate,” “plan,” “will,” “would” and “project” and other similar expressions that indicate future events or trends or are not statements of historical matters. These statements are based on Inspired management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of Inspired’s control and all of which could cause actual results to differ materially from the results discussed in the forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing Inspired’s views as of any subsequent date. You are advised to review carefully the “Risk Factors” section of Inspired’s annual report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent quarterly reports on Form 10-Q, which are available, free of charge, on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Inspired does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
For Investors
IR@inseinc.com
+1 (646) 277-1285

For Press and Sales
inspiredsales@inseinc.com

FAQ

What is the size of Inspired Entertainment's (INSE) new senior secured notes placement?

Inspired Entertainment's subsidiary completed a private placement of £270 million senior secured notes due 2030.

What interest rate will INSE pay on the 2030 Senior Secured Notes?

The notes will bear a floating interest rate of SONIA plus 550-600 basis points, based on the senior secured net leverage ratio.

How will Inspired Entertainment use the proceeds from the 2030 notes?

The proceeds will be used to redeem existing £235 million notes, repay £15 million in loans, cover refinancing expenses, and for general corporate purposes.

When do INSE's new senior secured notes and revolving credit facility mature?

The senior secured notes mature on June 9, 2030, while the revolving credit facility matures on December 9, 2029.

Who are the main purchasers of INSE's 2030 Senior Secured Notes?

The notes were purchased by Barclays Bank plc, HG Vora Special Opportunities Master Fund, BSE Investments, and HG Vora Opportunistic Capital Master Fund III A LP.