The senior unsecured bond would be issued within a framework of SEK 1.2bn for a tenor of three years.

According to the online casino operator, a capital markets transaction may follow the bond issuance, subject to market conditions.

A statement on LeoVegas’ website described how the funds would be utilised. It read: “The proceeds from the potential bond issue will be used to facilitate LeoVegas’ expansion strategy, refinance existing debt and for potential acquisitions.”

If the bond issuance is completed, LeoVegas would also enter a new three-year revolving credit facility agreement of €40m ($47.7m).

Over the term of the transaction, LeoVegas said the leverage ratio will not exceed 1.0x. However, this can be exceeded for short time periods in certain circumstances, such as with larger acquisitions.

LeoVegas CEO Gustaf Hagman, said: “With this, we ensure a long-term and stable financing for LeoVegas. We strengthen the company’s financial flexibility and diversify our financing with the combination of a bond and new bank loans.

“This enables us to continue to deliver on our expansion strategy where we focus on regulated markets and markets soon to become regulated.”

For Q3 2020, LeoVegas saw a marginal revenue increase of 1%, to a total of €88.9m.