Gentoo Media secures EUR 100 million financing for bond refinancing

Gentoo Media Inc., a company involved in game development, has secured a significant financing package to address its outstanding debt. The company has agreed to a EUR 50 million senior secured term loan with its shareholder ZJF and plans a EUR 50 million share issue during the fourth quarter.

The combined funding is intended to repay Gentoo Media's approximately EUR 91.5 million in senior secured bonds maturing in December 2026. The company's largest shareholders, including MJ Foundation Fundacja Rodzinna and ZJF, have provided full underwriting commitments for the share issue, totaling EUR 50 million.

This new capital structure is expected to provide Gentoo Media with increased financial flexibility. The senior loan can be repaid at any time without penalty and does not include equity components. Once the bonds are redeemed, the company's board may consider returning capital to shareholders through dividends or share buybacks.

To facilitate the share issue, Gentoo Media's board will convene an Extraordinary General Meeting. Proposals will include increasing the authorized share capital and authorizing a new class of common stock, "Class Z Common Stock." The company conducted a broad market process to evaluate refinancing alternatives, and an independent fairness opinion from Deloitte Malta confirmed the loan terms are in line with market conditions.