Aristocrat Leisure to repay debt, launches fresh share buyback

The news: Poker machine giant Aristocrat Leisure has launched a new share buyback and outlined plans to repay debt and consider merger and acquisition activity following the sale of its Plarium Global business.

The numbers: The company announced a new share buyback of up to $750 million, after completing a $1.85 billion share buyback in January. It will also repay a USD250 million Term Loan B debt facility by the end of March, well ahead of its 2029 maturity.

The context: Aristocrat said the buyback and debt repayment follow the receipt of USD600 million from the completion of the Plarium sale earlier this month. Its Pixel United subsidiary sold Plarium to Nasdaq-listed Modern Times Group for a fixed consideration of USD620 million, with an additional USD200 million contingent on meeting certain financial targets.

Aristocrat CEO Trevor Croker said the company’s robust balance sheet and strong cash flow generation enabled it to reinvest in the business and return cash to shareholders. “We will actively assess growth opportunities, including strategic acquisitions and investment in organic initiatives on an ongoing basis,” he added.