Eniro repays debt and makes a SEK 150 M capital gain – substantial improvement of financial key ratios

The early repayment is proposed to be financed by a SEK 400 M issuance of preference shares of Eniro. Subscription undertakings have been obtained for the whole issue amount. In total approximately SEK 1.2 billion of Eniro’s bank debt will be repaid during 2012.

Through the transaction, Eniro’s financial position, earnings and cash flow will be improved.

In brief, the transaction entails that:

  • The early repayment will generate a capital gain in the amount of approximately SEK 150 M
  • The previously announced plan to reduce net debt by SEK 650 M during 2012 will be expanded by approximately SEK 540 M to about SEK 1.2 billion over the course of 2012
  • Net debt in relation to EBITDA will be reduced to below 3.0, which entails a reduction in the interest margin in the loan agreement by 0.75 percentage points
  • Eniro’s Board of Directors proposes an authorization to issue preference shares in the amount of SEK 400 M. The issuance of shares requires the approval of a general meeting of shareholders. Subscription undertakings are agreed for the whole issue amount, however the public including existing shareholders in the Company are offered to subscribe for preference shares, and existing shareholders may be granted priority in connection with allotment
  • The dilution for existing shareholders amounts to approximately 1 percent of the share capital and of 0.1 percent of the voting rights
  • Shareholders representing 36,5 percent of the shares of the Company have announced that they are in favor of the transaction

“I am delighted that we have managed to achieve a proactive solution entailing that Eniro’s net debt will be reduced by an additional approximately SEK 540 M. The transaction makes a positive contribution to strengthening Eniro’s financial position, while bolstering the Company’s earnings and cash flow. By financing repayment of a loan at a discount, through a preference share structure, we meet the interests both of the Company’s current shareholders and the banks,” explains Johan Lindgren, President and CEO of Eniro.

This is an excerpt from the original press release. To get access to the press release in its entirety, you have to confirm that you are not a resident of a jurisdiction where viewing the materials would be unlawful. Please use following link http://bit.ly/IQINgN

For more information, please contact:
Johan Lindgren, President and Chief Executive Officer, Tel: +46 (0)8-553 310 01

Mattias Lundqvist, CFO, Tel: +46 (0) 8-553 310 04
Cecilia Lannebo, Head of Investor Relations, Tel: +46 722 208 277, e-mail: cecilia.lannebo@eniro.com

This Press Release contains information that Eniro AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publishing at 07.00 a.m. on 7 May 2012

Eniro is the Nordic region’s largest search company. Both consumers and companies can use Eniro’s services to easily locate where to buy services and products – regardless of whether the channel is internet, catalog or mobile. Advertisers can actively market themselves to interested consumers, find new customers and increase sales. Better search means better business.

Eniro has 3,600 employees in the Nordic region and Poland and has been listed on Nasdaq OMX Stockholm since 2000. During 2011, Eniro’s revenues amounted to SEK 4,323 M and EBITDA was
SEK 991 M. Headquarters are located in Stockholm, Sweden. More on Eniro at www.eniro.com

About Us

Eniro is a search company that aggregates, filters and organizes local information. Our growth is driven by users’ increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. Mobile advertising is today the fastest growing part of Eniro’s business. Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going. Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 2,000 employees and has been listed on NASDAQ Stockholm since 2000. During 2014, Eniro revenues amounted to SEK 3,002m and EBITDA was SEK 631m. Approximately 88 percent of Eniro advertising revenues come from multiscreen channels. The company’s headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com. Eniro – Discover local. Search local.

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