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Efore signs agreement with main financier for reorganisation of its financing.

M2 EQUITYBITES-November 22, 2018-Efore signs agreement with main financier for reorganisation of its financing


Efore Oyj (HEL:EFO1V), a developer and producer of demanding power products, announced on Wednesday that it has agreed with its main financier on the reorganisation of its loans, conditional on the implementation of the planned rights offering announced on 21 November 2018.

Under this reorganisation, Efore and the main financier have agreed a new payment scheme for the next five years for EUR6.0m loans maturing on 12 December 2018.

Reportedly, the loan agreements signed with the financier include the covenants of equity ratio, net debt/12 months rolling adjusted EBITDA and adjusted EBITDA in euros.

These covenants concerning equity ratio and adjusted EBITDA in euros were breached at the end of financial year 2017, but the company received a waiver from the main financier in February 2018 to deviate from the covenants.

According to Efore, it has agreed with its main financier that the next measurement point for the loan covenants will be 31 December 2018.

The main financier has announced that if the covenants are not met when measured on 31 December 2018, the financier is prepared to grant a waiver for the breach.

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Publication:M2 EquityBites (EQB)
Date:Nov 22, 2018
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