Eniro signs commitment letter on long-term financing
This has been made possible by Eniro’s profit level and strong cash flow.
Eniro has more than a year before expiry of its current loan agreement renegotiated its long-term financing. All six banks in the company’s current banking consortium (Danske Bank, DNB, Handelsbanken, Nordea, SEB and Swedbank) have signed the commitment letter. The commitment letter entails a more flexible annual repayment rate, increased operational flexibility and a continued possibility of future dividends on the company’s common shares.
More than a year before its current bank loans expire, Eniro has signed a commitment letter on long-term financing. All six banks in the company’s banking consortium (Danske Bank, DNB, Handelsbanken, Nordea, SEB and Swedbank) have committed to the financing, which runs for three years, with an option to extend by one year to four years on the condition that SEK 800 M of the bank loan is replaced by a corporate bond.
New long-term financing will create increased stability, more flexible rate of annual loan payments, enhanced operational flexibility and a continued possibility for future dividends.
“I am delighted and proud that Eniro – on its own merits and in a short period of time – has improved its financial situation so dramatically that we can now, in an orderly fashion and well in advance of expiration, present new financing for the company,” says Johan Lindgren, President and CEO of Eniro. “Using this financing as a foundation, we can increase our focus on local search and continue to promote user friendliness, quality and customer satisfaction in our offering. The mix of financing that we now achieve with a traditional bank loan as the foundation, a future corporate bond and the previously issued preference shares, provides increased stability and flexibility, as well as a maturity structure that is well-suited to our cash flow. It is thanks to our employees’ successful efforts that we have been able to create this opportunity. I would also like to thank our banks for their constructive efforts,” concludes Johan Lindgren.
The loan amounts to SEK 3 billion and is on interest-rate terms in line with the current agreement. For the year 2013 the bank loan is expected to decrease with approximately SEK 375 M. For the years 2014 through 2016, the scheduled annual amortizations will be approximately SEK 375 M (to be paid semi-annually). Eniro may also make additional voluntary prepayments. Worked-up cash flow and the cash balance at the beginning of the year will be used for the repayments.
For more information, please contact
Johan Lindgren, President and CEO, Tel: +46 8 553 311 14
Mattias Lundqvist, CFO, Tel: +46 8 553 310 04
Cecilia Lannebo, Head of Investor Relations, Tel: +46 722 208 277, e-mail: firstname.lastname@example.org
The information is such 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 08:00 a.m. on April 24, 2013.
Eniro is the local search engine. A clever shortcut to what you need, home or away. 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.
Eniro is one of the largest search companies in the Nordic region and Poland. The company has approx. 3,200 employees in the Nordic region and Poland and has been listed on Nasdaq OMX Stockholm since 2000. During 2012, Eniro’s revenues amounted to SEK 3,999 M and EBITDA was SEK 976 M. Headquarters are located in Stockholm, Sweden. More on Eniro at www.eniro.com
Eniro – Discover local. Search local.