Sumo Group agrees revised revolving credit facility with Clydesdale Bank

Sumo Group

Sumo Group plc (LON:SUMO), the provider of acclaimed development, design and publishing services to the video games and entertainment industries, has announced that it has agreed a revised revolving credit facility with Clydesdale Bank plc (trading as Yorkshire Bank).  

This agreement is through a deed of amendment and restatement dated 26 October 2021 to the revolving credit facility agreement dated 15 December 2017 as amended and restated by a deed of amendment and restatement dated 30 September 2020.

The principal changes to the facility are the increase from £30m to £45m, the extension from 30 November 2022 to 30 November 2023 and the waiver of a delisting following an acquisition by Sixjoy Hong Kong Limited, a subsidiary of Tencent Holdings Limited, as a cancellation event. Interest is now payable on amounts drawn down at the rate of 1.75 to 2.25 percent above Sterling Overnight Index Average compounded in arrears with lag for amounts drawn in sterling, above Secured Overnight Financing Rate for amounts drawn in US dollars and above Euro Interbank Offered Rate for amounts drawn in euros.

At 26 October 2021, the facility was drawn US$5.5m.

Sumo Group’s businesses provide acclaimed development, design and publishing services to the video games and entertainment industries from studios in the UK, India, Canada, the US and Poland.

Sumo Digital, as the Group’s primary business, is one of the UK’s largest independent developers of AAA-rated video games, having studios in Sheffield, Newcastle, Nottingham, Leamington Spa, Warrington and Pune, India. A second India studio in Bangalore was announced in September 2021 with a planned opening in the first half of 2022. The business has acquired four studios since IPO, which operate under their own names, BAFTA award-winning The Chinese Room in Brighton, Red Kite Games in Leeds, Lab42 in Leamington Spa and PixelAnt Games in Wroclaw, Poland. Sumo Digital provides turnkey and co-development solutions to a global blue-chip client base.

Pipeworks is an innovative, well-established, and respected US video games developer based in Eugene, Oregon with a recently opened second studio in Vancouver. It provides full development, co-development, and live operations to premier video game publishers and other partners.

Atomhawk is a multi-award-winning visual design company, with studios in Newcastle and in Vancouver (Canada), servicing the games, film, and visual effects industries.

Secret Mode is a video games publisher, focused on delivering fresh and new gaming experiences to players and building expansive and fulfilling communities around those games. It publishes titles developed within Sumo Group and also by independent developers.

Auroch Digital is a video game developer and publisher based in Bristol, with a focus on original IP creation.

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