€150 mln Bond to Aid Infogrames Turnaround

Infogrames has announced the full subscription of a €150 million ORANE (convertible bonds) issuance that the firm hopes to improve its current financial situation.

The Lyon, France-based Atari parent said that the bonds would facilitate the funding of Infogrames' current investment plans; reduce the firm's short-term debt and increase cash reserves; and give the publisher additional financial flexibility "to support its turnaround and to make strategic investments to grow the business."

Infogrames launched the issuance on December 19, 2007, and expects the settlement and delivery of the bonds on January 4, 2008.

Infogrames also said that it would use its new bonds to relaunch publishing initiatives to introduce new games based on existing franchises; leverage "key assets" to pursue online developments; and leverage the Atari brand.

In November, Infogrames posted an operating loss for the fiscal first-half ended September 30 of €29.3 million, an improvement from an operating loss of €36.9 million a year ago.

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