Lehto Group Plc: Lehto and the banks have agreed on financing as part of a financial package of around 50 million euros
Inside information
The preliminary agreement is part of approximately
- Disposal of the Lehto pipeline renovation business (approximately
+29 million euros ) - New RCF credit facility with banks (approximately
+13 million euros ) - SR funding for ongoing and new housing projects (approx.
+26 million euros ) - Issue of the convertible bond (approximately
+15 million euros ) - The new financing replaces the current RCF credit facility and the bilateral bank loans that will be repaid (approximately
-32 million euros )
According to the preliminary agreement, the PO and Nordea have agreed to grant a new
The validity of the New Financing Agreement is subject to the completion of the disposal of the pipeline renovation activity, the completion of the issue of convertible bonds as well as the repayment of the current RCF credit facility and the bilateral loans by
The financing package is expected to improve Lehto’s cash flow by approximately
- Estimated non-recurring effects
- The result for the 2022 financial year will improve by approximately
30 million euros - Equity will improve by approximately
30 million euros - Net cash flow in 2022 will improve by around
29 million euros - The capital ratio will improve by around 6 to 7 percentage units
- The result for the 2022 financial year will improve by approximately
- The estimated impact of the disposal on net sales and operating income in 2022
- Net sales from continuing operations decreased by approximately
-€36 million . - Operating income from continuing operations decreased by approximately
–5 million euros .
- Net sales from continuing operations decreased by approximately
In addition to the financial arrangement, as previously announced, the company has made staff reductions and the company has outsourced and is still outsourcing land in order to improve its profitability and cash flow.
Further information :
Uh. +358 50 343 4023
Veli-Pekka Paloranta
CFO
Uh. +358 400 944 074
(c) Decision 2022. All rights reserved., sources
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