A consortium to invest in shares of Cabonline and publishes certain estimates of the group’s financial development
Cabonline Group Holding AB (publ) (the “Company”) has today entered into an agreement with a consortium of Nordic and international institutional investors (the “Consortium”), pursuant to which the Consortium will become the new majority shareholders in the Company, subject to long form transaction agreements.
As part of the transaction, amongst other amendments to the terms, the Company’s existing SEK 1,650,000,000 senior secured sustainability-linked floating rate notes with ISIN SE0017767346 (the “Existing Notes”) will also be reduced by approximately SEK 500,000,000 and the Company will issue new notes in an aggregate amount of approximately SEK 200,000,000 which will rank senior to the Existing Notes, which will be offered to all holders of Existing Notes (the “Existing Noteholders”) and which is underwritten by certain of the Existing Noteholders (the “New Notes”).
In exchange for providing the New Notes, the participating Existing Noteholders will be offered to exchange an aggregate amount of their Existing Notes equal to approximately SEK 400,000,000 (to be distributed pro rata to each Noteholder’s participation in the New Notes) to a new tranche of elevated notes, which will rank pari passu to the New Notes. As part of the agreement the Company and the Consortium has agreed that a part of the New Notes in an amount of up to SEK 75,000,000 will be pre-funded prior to the implementation of the transaction. The prefunding will rank senior to the Existing Notes. In addition, in order to facilitate the transaction and as a part of the agreement with a majority of the Existing Noteholders, the 19th July interest payment will not be made until further notice.
The transaction will further strengthen the Company’s financial position going forward. The new shareholders in the Company are expected to best position the Company to deliver on its business plan. The transaction will be formalised through, among other things, a written procedure under the Existing Notes.
The cash balance of the group as of 30 June 2023 pro forma including the expected net cash proceeds of the New Notes (after OID of 6 per cent. and transaction costs) was approximately SEK 350 million.
In connection with the entry into of the agreement with the Consortium, the Company also publishes estimates regarding the group’s financial development for the remainder of 2023 and for the full year 2024 (taking the transaction into account). The Company estimates that the group’s gross revenue for 2023 will be approximately SEK 5.8 billion with an adjusted EBITDA of approximately SEK 260 million and capital expenditures of approximately SEK 100 million. For the full year 2024, the Company estimates that the gross revenue will be approximately SEK 6.5 billion with an adjusted EBITDA of approximately SEK 340 million and capital expenditures of approximately SEK 60 million. Furthermore, the Company estimates that the Company’s ongoing investment in its strategic initiatives will yield additional uplift to run rate EBITDA. These figures are the Company's estimates based on certain assumptions. The figures have neither been revised nor reviewed by the Company's auditor. Final outcome of gross revenue, adjusted EBITDA, capital expenditures and yield for 2023 and 2024 may differ significantly from the Company's estimates.
Pareto Securities has acted as financial advisor to the Company and the majority shareholders in connection with the transaction, and Houlihan Lokey has advised the Consortium.
Dag Kibsgaard-Petersen, CEO of Cabonline, commented, “I’m very pleased to be announcing this transaction, which will further strengthen our business and support Cabonline in pursuing our growth plans, benefitting transporters, drivers, customers, and employees alike. We’re excited about this next step and looking forward to working with the new majority shareholders”.
For further information, please contact:
Dag Kibsgaard-Petersen, CEO, tel +47 400 11 981, dag.kibsgaard-petersen@cabonline.com
Fredrik Lundqvist, CFO, +46 70 552 80 25, fredrik.lundqvist@cabonline.com
This information is information that Cabonline Group Holding 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 persons set out above, on July 15 at 01:30 CEST.
Appendix: Ongoing re-platforming to iCabbi
About Cabonline Group
Cabonline is the leading taxi company in the Nordic region, with ~2,600 connected transporters and ~4,900 vehicles in Sweden, Norway, Finland and Denmark. Cabonline operates a series of well-known brands, such as Flygtaxi, TaxiKurir, Norgestaxi, TOPCAB, Kovanen, Taxi Skåne, Taxi Väst, Umeå Taxi, Sverigetaxi and Taxi 4x27. Through Cabonline, transporters can access attractive customer agreements, support from industry-leading technology and efficient services where shared infrastructure delivers economies of scale. In 2022, Cabonline’s revenue was approximately SEK 5.5 billion. For further information: cabonlinegroup.com/en