Shares of Ubisoft Entertainment (OTC:UBSFF, EPA:UBI) slumped after the maker of the Assassin's Creed videogame franchise raised funds through the placement of bonds convertible into equity.
Ubisoft said that it had raised €494.5 million from the placement with the bonds having a December 5, 2031 maturity date, a 2.875% coupon and a 47.5% conversion premium.
Ubisoft plans to use the proceeds of the offering for general corporate purposes, increasing financial flexibility and refinancing existing debt, including the partial repurchase of up to €250 million in shares.
Frédérick Duguet, chief financial officer, said: “The success of this convertible bond, with a maturity of 8 years, a first ever for Ubisoft and a first since May 2019 for a non-rated European issuer, together with a 2.875% coupon and a 47.5% conversion premium, underlines investors’ confidence in Ubisoft’s credit standing as well as its long-term value creation potential.”