- Repayment funds follows sale of Gearbox Entertainment to Take-Two
- Embracer Group is set to split into three public entities, with Asmodee taking on the majority of its debts
Embattled publisher Embracer Group has paid lenders $300 million on its revolving credit facility as it looks to clear its significant debts.
In its last financial statement, the company said that it had $1.5 billion in debt. Its revolving credit facility has a current end date of May 2025, at which time all debts must be paid.
The $300m repayment comes from the proceeds of its sale of Borderlands developer Gearbox Entertainment to Take-Two. The deal was said to be worth $460m.
Breaking up
In April, Embracer Group unveiled plans to split into three new companies as part of its plans to pay off its debts.
It aims to break up into tabletop specialist Asmodee Group, indie, double-A and mobile publisher Coffee Stain & Friends, and triple-A outfit Middle-Earth Enterprises & Friends.
A significant portion of the company’s debt will transfer to the Asmodee Group. Through Asmodee, Embracer entered into a financing agreement with JP Morgan, BNP Paribas, SEB, Societe Generale and Swedbank worth 10.5bn kr ($962m). The loan is secured by Asmodee assets.
Embracer Group has already made a number of sales and enacted widespread layoffs to cut costs and raise funds prior to that announcement, sparked by years of M&A and a failed $2bn deal with Savvy Games Group.
It has made more than 1,400 staff redundant and sold Saber Interactive in a deal that could also see it lost 4A Games and Zen Studios.
