YA Holding plans to seek waiver for financial covenant and approval of deferred interest payments under outstanding bonds
On 17 December 2021, YA Holding AB (publ) (“YA” or the “Company”) issued senior secured social sustainability-linked bonds in an amount of SEK 480 million within a framework of SEK 650 million (the “Sustainability-linked Bonds”).
Under the terms and conditions of the Sustainability-linked Bonds, the Company has amongst other things undertaken to make quarterly interest payments to the bondholders and maintain certain financial covenants, e.g. a certain leverage ratio (net interest bearing debt/adjusted EBITDA).
After successful procurement processes for labour market training courses for the Swedish Public Employment Service (Arbetsförmedlingen), YA launched new professional bus driver training courses in 20 locations in March 2022 and professional truck driver training courses in 25 locations in April 2022. So far, the number of participants allocated to the new professional driver courses has been significantly lower than anticipated by the forecasts provided by the Swedish Public Employment Service in connection to the procurement process in 2021. According to the Swedish Public Employment Service, this deviation may amongst other things be attributed to a limited production capacity at the Swedish Public Employment Service and the Swedish Public Employment Service having difficulties in finding participants with appropriate qualifications to participate in and complete the courses. YA is expecting the number of participants to grow towards the end of this year, providing that the Swedish Public Employment Service’s forecasts are not subject to further deviations.
Based on the initial forecasts provided by the Swedish Public Employment Service for the new professional driver educations, the Company would have fulfilled the leverage ratio maintenance covenant. Due to the substantially lower than anticipated student allocations, which have had a negative impact on the Company’s EBITDA, the Company recognises a risk that the Company may temporarily not be able to fulfil the leverage ratio maintenance covenant.
Furthermore, the lower than anticipated student allocations have had a negative impact on the Company’s liquidity. The Company’s owner, certain CapMan funds, and the Company’s board of directors are preparing various measures to ensure the Company’s liquidity. In order to ensure liquidity for other budgeted and current expenses, the Company intends to, amongst other things, seek approval for the deferral of the interest payments scheduled for 17 September 2022 and 17 December 2022 under the Sustainability-linked Bonds.
The Company intends to initiate discussions with the bondholders as regards the conditions for a written procedure regarding a waiver of the leverage ratio maintenance covenant and deferral of interest payments in the near term.
Carnegie Investment Bank AB (publ) has been retained by YA as advisor in connection with the aforesaid. Gernandt & Danielsson Advokatbyrå KB has been retained as legal counsel.
This disclosure contains information that YA Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 12-08-2022 19:36 CET.
For further information, please contact:
Martin Modig, CEO YA Holding AB (publ)
Tel: +46 (0) 72 369 66 80
E-mail: martin.modig@ya.se
Antti Rokala, CFO YA Holding AB (publ)
Tel: +46 (0) 76 899 49 73
E-mail: antti.rokala@ya.se
YA Holding, including subsidiaries is a Sweden based educational company. The business is primarily conducted in YrkesAkademin, the largest subsidiary. YrkesAkademin is one of the leading companies in the vocational education and labour market training industry. YrkesAkademin conducts training in several areas, including professional drivers, machine operators, technology, restaurant and health care. Under the name of Study Abroad, YrkesAkademin mediate Swedish students to foreign universities.