Pagero enters into a new financing arrangement to finance its proposed acquisition of Tungsten Corporation Plc and expand its financing facilities
This announcement and the information contained herein is not considered to have a significant impact on the Pagero Group’s performance.
Pagero Group AB (publ) (“Pagero”) has entered into an arrangement pursuant to which Pagero has issued senior secured floating rate notes (the “Notes”) in a principal amount of SEK 750 million (the “Notes Financing”), which replaces the Pagero Group’s former main bank financing arrangement. The net proceeds of the initial Notes will be applied towards the financing of Pagero’s cash offer announced earlier today to acquire the entire issued and to be issued ordinary share capital of Tungsten Corporation Plc (“Tungsten”), the potential refinancing of any existing financial indebtedness of Tungsten and for the general corporate purposes of the Pagero Group.
The Notes Financing also permits Pagero to issue additional Notes (on an uncommitted basis and subject to lender consent) of up to an additional SEK 750 million, the net proceeds of which may be applied towards the financing of potential future acquisitions and the general corporate purposes of any such targets acquired.
The Notes carry interest at an annual percentage rate that is the aggregate of (i) STIBOR (1.00% floor) and (ii) 6.70% for the financial years 2022 and 2023 and 5.95% for any financial year thereafter. Pagero and the agent under the Notes have further undertaken to enter into negotiations regarding certain sustainability linked interest adjustments, whereby achievement of the sustainability performance target(s) agreed upon would permit for a downwards adjustment of interest of 0.10 per cent. The terms of the Notes Financing include customary restrictive covenants, such as limitations on the incurrence of financial indebtedness, disposals and distributions and dividends.
The financing has been provided by Ture Invest AB, a leading direct lending provider in the Nordics. The Notes mature at the beginning of May 2026.
Bengt Nilsson, CEO of Pagero, today commented:
"We are welcoming our new financing partner and expect our collaboration to fast-forward us towards our vision of becoming the world's largest network for automated and secure business communication. This creates a strong financial backbone for us to execute on our communicated growth plan as well as potential acquisitions”
Martin Torell, Partner at Ture Invest AB, today commented:
“We are pleased to support Pagero in respect of, amongst other things, the financing of its proposed acquisition of Tungsten which we believe is a transaction that comes with solid strategic rationale. We look forward to working as a long-term partner of Pagero and its main shareholder, Summa Equity, with whom we have previously completed several ESG-linked software acquisition financings.”
Certified adviser
Erik Penser Bank is Certified Adviser and can be contact on +46 (0) 8-463 83 00 or certifiedadviser@penser.se.
For more information please contact:
Bengt Nilsson, CEO
Bengt.nilsson@pagero.com
Jan-Olof Ohlsson, CFO
Jan-olof.ohlsson@pagero.com
About Pagero
Pagero provides a Smart Business Network that connects buyers and sellers for automated, compliant, and secure exchange of orders, invoices, payment instructions and other business documents. With an open network and a wide range of value-added apps, Pagero helps businesses streamline their order-to-cash and purchase-to-pay processes while unlocking the full potential of accurate and reliable business data. All of this, regardless of location, industry, size or systems. Find out more at www.pagero.com.
Pagero’s share is traded on Nasdaq First North Growth Market under ticker PAGERO and ISIN SE0016830517.