Tecnotree has signed an agreement for long-term financing of EUR 33.8 million
Stock Exchange Release
30th August 2013, 2.15 pm EEST
Tecnotree has agreed with its bank on the renewal of the debt of the company. The agreement is based on the Term Sheet disclosed on 12th August 2013. The financing is in force till 30th June 2018 and it consists of a long-term loan of approximately EUR 21.8 million and a credit limit of EUR 10.0 million to finance working capital. In addition, the company will have a EUR 2.0 million bank guarantee limit for a shorter term.
The semi-annual amortisations of the long-term loan are EUR 1.1 million each, starting 31st December 2014 and the balance of the loan, EUR 14.1 million, is due on 30th June 2018. The credit limits are in force till 30th June 2018. This arrangement gives Tecnotree EUR 5.0 million more financing as the credit limit to finance working capital goes up from EUR 5.0 million to EUR 10.0 million. The company has not had a separate bank guarantee limit.
The covenants of the financing agreement test semi-annually Tecnotree’s key figures related to EBITDA, cash flow, capital expenditure, equity and overdue receivables (which is tested on a monthly basis). In order to compensate for the seasonality, many key figures are calculated by using 12 months’ cumulative figures.
The financing agreement includes conditions typical of this kind of arrangement.
Ilkka Raiskinen, CEO, tel. +358 45 113 113
Tuomas Wegelius, CFO, tel. +358 400 433 228
NASDAQ OMX Helsinki Oy
Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps communications service providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetise service bundles, provide personalised user experiences and augment value throughout the customer lifecycle. With over 1100 telecom experts, Tecnotree serves more than 100 service providers in over 70 countries. Tecnotree is listed on the main list of NASDAQ OMX Helsinki with the trading code TEM1V. For more information on Tecnotree, please visit www.tecnotree.com