Olivia R. February 4, 2020
FaZe Clan has entered into a convertible loan facility worth $22.7 million.
A convertible loan is a short-term debt that converts into equity. In FaZe Clan's case, it's at a pre-money equity valuation of $220 million. Usually, a convertible loan is converted during the next investment round.
A Canadian investment bank, Canaccord Genuity, acted as the exclusive financial advisor for the immense loan. The unnamed lender was also given a seat on FaZe Clan's board of directors in conjunction with the loan.
In the case of FaZe Clan's loan, it will be used for working capital and general corporate purposes. It has not yet been made clear what these purposes will be.
According to Esports Observer, FaZe's head of esports Erik Anderson made it clear last summer that a training facility is probably not in the organization's future. He told the esports business publication that there's "ample boot camp space" around the world for FaZe Clan's teams to use while traveling. This makes more sense, seeing as to how their many players are spread across the world.
While they may not have a bootcamp on their agenda, FaZe Clan did open a headquarters of sorts in Hollywood Hills. It's actually two 12,500-square-foot mansions, one full of FaZe clan members and one packed with their influencers.
This is where the players, streamers, and personalities live, eat, and attend meetings. Most of the day they're in their own rooms playing their games of choice on stream.
Still, these mansions don't have any rooms created specifically for their growing amount of esports teams to scrim together. Right now, FaZe Clan has players in Fortnite, Counter-Strike: Global Offensive, Call of Duty, FIFA, Rainbow Six Siege, and PlayerUnknown's Battlegrounds.
But until all of the players are gathered up in the same locale, Anderson told Esports Observer, a training facility doesn't seem likely.
Maybe the loan is to pay off all of the damage FaZe Banks did to that hotel in Las Vegas?
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