Arise enters into a facilities agreement with DNB and announces early redemption of green bonds

Arise AB (publ), (“Arise” or the “Company”), announces that the Company enters into a facilities agreement regarding a green term facility of approximately EUR 52 million and a green revolving facility of EUR 40 million with DNB and that the Company will redeem all outstanding bonds in the Company’s EUR 50 million senior unsecured green bond 2022/2026 with ISIN SE0017487416 (the “Bond”).

The Company has today, as borrower and security provider, entered into a facilities agreement regarding the refinancing of the Company’s green facility of approximately EUR 52 million and a new revolving green facility of EUR 40 million with DNB. In connection herewith, the Company has resolved to fully redeem the Bond in accordance with the terms and conditions of the Bond (the “Terms and Conditions”), which is financed with the Company’s existing liquid funds.

The new agreement entails a significant reduction of the Company’s financing costs as the Bond, with a cost of EURIBOR + 5.25%, is repurchased. The revolving facility runs with a margin against EURIBOR of 2.25%, and only on the utilized amount. The total annual financing costs are estimated to decrease by approximately EUR 2.5 million with an unused revolving facility. Additionally, the revolving facility increases the flexibility for the Company’s capital allocation compared to the Bond. A break-fee for the repurchase of the Bond and dissolution of previous arrangement fees will incur a one-time cost in the first quarter 2025 of approximately EUR 1.6 million.

The redemption of the bonds will take place on 31 January 2025 with a record date of 24 January 2025. The redemption amount corresponds to 102.625 per cent of the nominal amount per outstanding bond under the Bond along with accrued and unpaid interest in accordance with the Terms and Conditions. The redemption amount together with accrued and unpaid interest up to and including the redemption date will be distributed to each person who at the end of the business day on 24 January 2025 is registered as a bondholder in the debt register maintained by Euroclear Sweden.

In connection with the redemption, the Bond will be delisted from Nasdaq Stockholm Sustainable Bond List.

A notice of early redemption will be sent today to all bondholders according to the debt register maintained by Euroclear Sweden as of 3 January 2025.

“Securing a revolving facility of EUR 40 million while repurchasing the bonds is a testament to our strong financial position and track record. Flexible and cost-effective financing ensures that we are well-positioned to continue delivering profitable growth”, says Markus Larsson, CFO, Arise AB.

Halmstad 10 January 2025

ARISE AB (publ)                                                                                                

For further information, please contact:

Markus Larsson, CFO Arise AB, +46 735 321 776

This information is such information as Arise AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 10.30 CET on 10 January 2025.

About Arise

Arise is  a leading independent company that realises new green energy. The company develops, builds, sells and manages renewable electricity production. The company is listed on Nasdaq Stockholm.

Arise AB (publ), Linjegatan 7, SE-301 50 Halmstad, Sweden, telephone 46 (0)10 450 71 00, corporate id .no. 556274-6726. E-mail info@arise.se, www.arise.se