Lehto Group Plc: Lehto’s new financing agreement entered into force

Lehto Group Oyj
Inside information
1 July, 2022 at 2.20 a.m. (EET)

Lehto Group Plc (”Lehto”) announced on 20 May 2022 that it had signed a binding preliminary agreement on new financing with OP Corporate Bank plc (”OP”) and Nordea Bank Plc (“Nordea”). The preliminary agreement defined the main conditions for the new financing agreement. The most significant conditions were the completion of Lehto’s pipeline renovation business divestment, completion of the convertible bond issue and repayment of existing RCF credit facility and bilateral loans by 30 June 2022.

The conditions related to the preliminary agreement have been met on 30 June 2022 and thus, based on the preliminary agreement, Lehto, OP and Nordea have signed a new financing agreement that has entered into force. According to the financing agreement OP and Nordea have granted Lehto a new EUR 13 million RCF credit limit that is available immediately and is valid until 31 March 2024. Additionally, banks are committed to finance so called RS housing projects by approximately EUR 26 million during years 2022-2023.

The financing agreement together with the convertible bond issue and divestment of pipeline renovation business significantly improve Lehto’s financial position. Lehto told about the completion of pipeline renovation business in a stock exchange release published on 14 June 2022, and about convertible bond issue in stock exchange releases published on 29 and 1 July 2022.

“The new financing agreement creates a solid ground for the implementation of our strategy. We will continue intensive work for strengthening our competitiveness and improving profitability”, says CEO Juuso Hietanen.

Further information:

Juuso Hietanen
CEO
Tel +358 50 343 4023

Veli-Pekka Paloranta
CFO
Tel +358 400 944 074