FIRY has issued notice to redeem the remaining approximately $49.7 million principal amount of its 10.25% secured notes due 2026, completing repayment of a $300 million debt issuance ahead of maturity.
The redemption is scheduled for October 15, 2026.
FIRY will redeem the remaining notes at 100% of principal plus accrued and unpaid interest through, but excluding, the redemption date.
Following the redemption and satisfaction and discharge of the related indenture, FIRY expects to have no remaining notes outstanding and no outstanding indebtedness for borrowed money.
Liens securing the debt will also be released, and FIRY will no longer be subject to the covenants contained in the note indenture.
The company plans to fund the redemption with proceeds from the previously announced sale of its equity stake in Exit Games.
FIRY expects the October redemption alone to save approximately $800,000 in cash interest.
Combined with a separate August 2026 redemption, the debt repayment actions are expected to save approximately $3.6 million in interest that otherwise would have accrued through the notes’ December 15, 2026 maturity date.
FIRY expects to enter 2027 without outstanding borrowed debt.
The company plans to direct the resulting financial flexibility toward its businesses while considering future debt financing when management believes leverage could improve equity returns.
KEY QUOTES:
“The December 15 debt wall is coming down. This redemption completes the retirement of our $300 million Notes ahead of their maturity, with no new capital raised and no shareholder dilution. We believe we have the capital to run and grow our businesses and fund our litigation if necessary. Going forward, we expect to use debt when we believe it can enhance equity returns. The next chapter is about what we build from here.”
Andrew Paradise, CEO and Founder of FIRY
“Retiring the Notes is another step in our 100-year journey. We expect to enter 2027 without outstanding borrowed debt and with greater flexibility. Without debt service, more cash will be available to invest in the businesses as we focus on growing revenue and AEBITDA, supporting our guidance of modest positive operating cash flow in 2027 and revenue more than doubling from 2025 to 2028. We will consider debt in the future when we believe it enhances equity returns.”
Alex Walsh, CFO of FIRY
