AS Ekspress Grupp to refinance the existing loans 23.07

On July 12th 2012, Ekspress Grupp entered a new syndicate loan contract that refinances group’s existing loan and financial leas obligations towards banks and leasing companies. The refinancing transaction was settled on 23rd of July 2012. The parties of the new syndicate are SEB Bank and Nordea Bank.

The most important conditions when compared towards the earlier contract are the interest marginal that is 1% lower than the previous one, extending the final term of the loan contract until July 25th 2017 and calculation of monthly loan repayments according the schedule of average 7.8 years. Loan balance as capital payment upon termination of the contract is approximately 11 million euros. The final contractual term up to now was 25th of January 2015 and repayments were based on a 5-year schedule. 

Amendments of the new entered syndicate loan contract shall have immediate impact on the economic results of the company. The new contract brings about lower monthly interest and loan repayments, the guarantee fees paid shall also decrease. In total, the impact of contract amendments on company's net profit is approximately 200 thousand euros a year. Considering the cash flow, savings in debt servicing will be about 3 million euros a year. So far, the contract prohibited payment of dividends to shareholders; payment is permissible pursuant to the new contract. With entering the new syndicate contract, the company incurs costs in approximately 60 thousand euros on contract fees and formalisation of securities.

As a result of amending the syndicate loan, company’s expenses shall decrease and the amount of free cash, which the company plans to invest into growing the business through new companies or acquiring and launching assets producing turnover, shall increase.  

“Ekspress Grupp is a good example of a company where strong management and owners can maintain trust towards the path chosen by the company also under severe economical conditions. SEB has always believed in Ekspress Grupp since the company’s professional team is capable to realize their vision also under complicated circumstances. The new syndicate loan has an advantageous impact over the financial situation of the company and helps to strengthen the market position of the media group", stated Allan Parik, Management Board Member and Manager of the Corporate & Institutions Area of SEB.

“Under strong leadership, Ekspress Grupp has pulled through the crisis and shown itself to banks as a reliable partner. We believe in the managerial decisions of Ekspress Grupp and are glad to continue as their long-term cooperation partner,” said Andres Laane, Nordea Bank’s Management Board Member and Deputy Head of Banking.  

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