Kreate concluded a new financing arrangement

Translation: Original published in Finnish on 07/02/2025 at 08:00 am EEST

Kreate announced on Tuesday that it had signed a new financing agreement for 49 MEUR. The new financing agreement replaces the company's agreements maturing next year and is a normal refinancing of loans. A timely new agreement extends Kreate's debt maturity and thereby improves the company's ability to execute its strategy.

A timely financing arrangement extends debt maturities

The 49 MEUR financing agreement signed by Kreate with OP Corporate Bank and Danske Bank comprises a 29 MEUR term loan and a 20 MEUR revolving credit facility. The new loan has a maturity of 36 months and includes an option to extend by an additional 12 months. The company intends to use the funds to refinance existing debt and for general working capital purposes.  The arrangement also includes an uncommitted additional financing option of up to 5 MEUR, subject to a separate credit approval by the financing banks.

The new financing package includes covenant terms consistent with the previous financing agreement, based on the net debt/EBITDA ratio. At the end of Q1’25, Kreate's net debt to adjusted EBITDA ratio was 1.6x, and thus the company's financial position remained stable. With the new financing arrangement, Kreate extends the maturity of its debts well in advance, as the previous credit facility and loan agreements would have matured in 2026. We believe that this improves the company's ability to implement its strategy in both Finland and Sweden.