Officials from French publisher Infogrames Entertainment, parent company of North American publisher Atari, Inc., have announced that the business’ €150 million ($221.5) ORANE (convertible bonds) issuance has been fully subscribed.
The issuance was organized in order to strengthen the company’s capital base and fund previously announced investment plans, as well as reduce short term debt. The offering has been underwritten by leading shareholder BlueBay Asset Management, with further details expected to be announced tomorrow.
Around €40 million of the proceeds will be used to repay loans from Banc of America – who recently extended Infogrames’ €54.7 million ($80.8m) credit line until February 28th, 2009. The remaining proceeds of more than €100 million ($147.7m) will be used to finance investments, including a re-launch of the company’s publishing activities. The company has also spoken of making “strategic investments”, without providing any further details.
Although Infogrames’ recent restructuring and financial problems have caused considerable turmoil at Atari, Inc. the French publisher notes that it has more than ten projects currently under development, including a new Alone in the Dark
sequel and a return to older franchises such as Airborne Rangers
and Hogs of War
. A focus on online titles and distribution has also been mentioned, as well as continued exploitation of the classic Atari back catalog.