Translation: Original published in Finnish on 11/06/2026 at 07:40 am EET

SSH announced on Thursday, that it is redeeming all the remaining notes of its hybrid bond issued in 2015. The nominal value of the remaining bond is 0.44 MEUR, as the company repurchased the majority, amounting to 8.56 MEUR in the tender offer  completed already in April 2026. We consider redeeming the remaining bonds as a sensible measure that will permanently remove the expensive financial instrument that has long weighed on the company's balance sheet. In our estimates, we had already expected the company to redeem the remainder of its hybrid debt during the year, so the announcement was expected and does not impact our estimates.

The redemption date is December 15, 2026, at which point SSH will pay the noteholders 100% of the nominal value in addition to accrued and unpaid interest. The amount to be paid totals around 0.67 MEUR, representing a premium of ~53% over the nominal value. This can be easily handled with the company's current cash (Q3'26: liquid assets of 8.5 MEUR). The proceeds from Leonardo's share issue (20 MEUR) have now largely been used to buy back hybrid debt (according to our calculations, around 15-16 MEUR was used to buy back a hybrid with a total nominal value of 12 MEUR).

Following the significantly larger buyback executed in April, the interest burden of the hybrid loan on SSH's earnings per share was already marginal, meaning the final redemption announced now will no longer have a material impact on the company's income statement or cash flow. Going forward, however, the company's net income will better reflect its cash flow-based earnings (hybrid loan interest was previously included only in EPS), although the company's reported figures will still suffer somewhat from the non-cash PPA depreciation related to the Deltagon acquisition.