Copyright © Inderes 2011 - present. All rights reserved.
  • Latest
  • Markets
    • Morning Review
    • Stock Comparison
    • Financial Calendar
    • Dividends Calendar
    • Research
    • Articles
    • Insider Transactions
  • inderesTV
  • Portfolio
  • Forum
  • Premium
  • Femme
  • Learn
    • Investing School
    • Q&A
    • Analysis School
  • About Us
    • Our Coverage
    • Team
Third party research

Ovzon: Encouraging credit facility - ABG

Ovzon

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
* New credit facility (SEK 300m + 300m) with promising terms* 3m STIBOR +2.2-2.9% (previously USD 3m LIBOR +10%)* Reduces annual interest by ~SEK 60m
Replaces the current USD 65m debt with P Capital Partners
Encouragingly, Ovzon has today announced that it has signed a facilities agreement with Danske Bank to refinance existing loans, including a SEK 300m term loan and a SEK 300m revolving credit facility. The new terms are 3m STIBOR + 2.2-2.9%, which is significantly lower than the current interest rate of USD 3m LIBOR + 10% with P Capital Partners. The transaction is expected to be completed in Q3 2025.
Interest to be reduced by ~70%
Currently, Ovzon pays an annual interest rate of ~SEK 90m on its USD 65m (~SEK 610m) debt. Based on the new structure and using the mid-point (3m STIBOR + 2.55%), we calculate that this will be reduced by ~70% (SEK ~60m) to ~SEK 30m per year, equivalent to SEK 0.5/share.
Strong signal value
The announcement is positive not only from a cash flow point of view, but also shows that Ovzon is in a significantly different position today than historically, as it involves refinancing with bank debt. Based on recent orders, we anticipate marked improvements in sales, margins, and FCF in 2025e-2026e. We expect to hear more about this progress during its CMD on 4 September.
Find us on social media
  • Inderes Forum
  • Youtube
  • Facebook
  • Instagram
  • X (Twitter)
  • Tiktok
  • Linkedin
Get in touch
  • info@inderes.fi
  • +358 10 219 4690
  • Porkkalankatu 5
    00180 Helsinki
Inderes
  • About us
  • Our team
  • Careers
  • Inderes as an investment
  • Services for listed companies
Our platform
  • FAQ
  • Terms of service
  • Privacy policy
  • Disclaimer
Inderes’ Disclaimer can be found here. Detailed information about each share actively monitored by Inderes is available on the company-specific pages on Inderes’ website. © Inderes Oyj. All rights reserved.