Embracer, Owner Of Saber, Plaion And Milestone, Extends Credit To 2025 While Working To Pay Off Remaining $1.4 Billion Debt

Embracer Group today announced that they have agreed with various lenders to extend their credit windows to 2025 while they continue working on cost reductions. The company, which has made significant progress by making mass layoffs and closing various studios, had appeared to overspend significantly the past few years and has blamed the failure of a $2 billion deal that fell through earlier this year for their current situation.

There has currently been no word on whether in-house games like SnowRunner, Expeditions, Dakar Desert Rally, MotoGP or the SBK franchise were affected by the financial status of the company, but I do think most of us expected to see SBK 22 bugfixed and SBK 23 to have existed considering the excitement around the original licensing announcement.

Their text:

Press release • December 18, 2023 • 08:00
EMBRACER GROUP ANNOUNCES EXTENSION OF CREDIT AND LOAN FACILITIES

Embracer Group AB (”Embracer”) has entered into agreements for its two main credit- and loan facilities, with a nominal value of around SEK 17 billion, extending the maturity until February and May 2025, respectively. The amendment agreements include scheduled quarterly minimum prepayments, that amount to SEK 2.6 billion on an accumulated basis up until January 2025, starting in Q1 FY 24/25. The currently expected interest rate on the group’s total debt, based on a floating rate, is around 6.15%.

“We are pleased to further strengthen Embracer’s financial flexibility, which also demonstrates the confidence that our main banks and financial institutions have in our financial profile and strategy. As part of the ongoing restructuring program, we have the ambition to reduce debt, both on a gross and net debt level. This credit and loan extension is aligned with our own agenda and puts us in a stronger position as we transition from heavy-investment mode to a highly cash-flow generative business”, says Lars Wingefors, co-founder and Group CEO of Embracer.

About Embracer Group
Embracer Group is a global Group of creative and entrepreneurial businesses in PC, console, mobile and board games and other related media. The Group has an extensive catalog of over 900 owned or controlled franchises. With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its twelve operative groups: THQ Nordic, PLAION, Coffee Stain, Amplifier Game Invest, Saber Interactive, DECA Games, Gearbox Entertainment, Easybrain, Asmodee, Dark Horse, Freemode and Crystal Dynamics – Eidos. The Group has 135 internal game development studios and is engaging more than 15,500 employees in more than 40 countries.