Embracer has secured a new €600 million revolving credit facility with a two-year tenor.
The Swedish conglomerate has an option to extend its new credit line for an additional year and claims it will help reduce interest expenses through “improved terms and a reduced financial leverage.”
The new facility will replace Embracer’s remaining SEK 4.8 billion (€420 million) revolving credit facility, which matures in May 2025.
“Thanks to the significant measures taken throughout the current calendar year, we have strengthened our financial structure and responsibly reduced our financial leverage,” said Embracer CEO Lars Wingefors. “This step is part of our transition to becoming a leaner and more focused company.”
Embracer’s brutal layoffs
That transition saw Embracer reduce its head count by over 4,500 employees as part of a sweeping restructuring program that brought mass layoffs and significant divestments.
The decision to downsize was made after Embracer spent years throwing cash at mergers and acquisitions, but the company eventually said it needed to move out of “heavy-investment-mode” to become a “highly cash-flow generative business.”
It has since sold major assets such as Gearbox Entertainment and Saber Interactive, cancelled over 80 projects, shuttered a number of studios, and laid off vast swathes of its workforce.
The company subsequently split its business into three individual, publicly-listed entities. In its latest financial report, Embracer outlined plans to release 70 projects during the fiscal year ending in March 2025. It also recently introduced a new AI policy it claims will “massively enhance” development and its wider business operations.