Embracer Group reimburses lenders with $300 million

Embracer Group has made a significant payment of SEK 3.2 billion ($300 million) on its revolving credit line, moving closer to settling its outstanding debts.

This payment was communicated to lenders today, representing progress toward full repayment, which is scheduled for completion by May 2025, as per the group's strategic plan.

The repayment deadline is part of extended credit and loan agreements that Embracer secured last December.

The funds for this repayment were sourced from the net proceeds from the sale of Gearbox Entertainment to Take-Two Interactive. The $460 million deal, which was announced in March, was finalized last week.

Additionally, Embracer has divested Saber Interactive and its associated studios for $247 million.

Despite these efforts, Embracer's financial report last month indicated the group still has $1.5 billion in outstanding debt. However, the sales of Gearbox and Saber Interactive are expected to make a substantial reduction in this amount.

As part of its restructuring plan, the company is transferring €900 million of its debt to tabletop games publisher Asmodee, aligning with Embracer's decision to divide into three distinct units.

In an interview with GamesIndustry.biz, CEO Lars Wingefors stated, "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."