M.O.B.A. Network reaches agreement with committee of bondholders for certain amendments to the terms and conditions for its bonds

As previously communicated on 6 March 2026, M.O.B.A. Network AB (“M.O.B.A.” or the “Company”, and together with its subsidiaries, the "Group") has divested its Union for Gamers (“UFG”) business through a sale of all its common stock and other ownership in the Group company Magic Find, Inc. (the “Disposal”). The cash consideration, net of transaction costs, from the Disposal has been deposited into a proceeds account (the “Proceeds Account”) subject to security in favor of the creditors under the Company’s outstanding bond loan with ISIN SE0020050540 (the “Bonds”) and working capital facility in accordance with the existing intercreditor arrangement.

M.O.B.A. has, over a period of time, been in discussions with certain larger bondholders representing approximately 55.50 per cent of the adjusted nominal amount of the Bonds (the “Ad Hoc Committee”) regarding, inter alia, a potential extension of the maturity date of the Bonds. M.O.B.A. today announces that it has reached an agreement with the Ad Hoc Committee to inter alia extend the maturity date and to make certain amendments to the terms and conditions for the Bonds (as further described below) (the “Amendments”).

The Amendments
A summary of the key Amendments are set out below:

●      The final maturity date is extended to 26 February 2028.

●      No subsequent Bonds may be issued.

●      The Company shall make a partial redemption of Bonds in a total nominal amount of EUR 10 million, using proceeds from divestments of certain assets (but not cash generated in the ordinary course of business or by way of new debt ranking pari passu or senior to the Bonds) or equity raises (the “Mandatory Redemption”) by 30 September 2026, or, if the Company has entered into a binding agreement on or prior to 30 September 2026 in respect of any transaction for which net proceeds may be applied towards the Mandatory Redemption, within business 90 days from 30 September 2026.

●      Repayments of the principal amount made in respect of the Bonds, including the Mandatory Redemption, shall be made at par until and including 26 May 2026, at 106 per cent. from and including 27 May 2026 until and including 30 September 2026, and at 108 per cent. thereafter, provided that any repayments made within 90 business days from 30 September 2026 shall be made at 106 per cent. If the Company has entered into a binding agreement in respect of any transaction for which net proceeds may be applied towards the Mandatory Redemption on or prior to 30 September 2026.

●      Bonds held by a Group company on the effective date of the Amendments (being Bonds in a nominal amount of EUR 5,000,000) is cancelled.

●      The funds standing to the credit of the Proceeds Account may be used by the Company towards the Mandatory Redemption and towards repayment of outstanding debt under the Company’s super senior working capital facility.

●      All proceeds from any disposal of assets, other than disposals made in the ordinary course of business, is applied in full towards a mandatory redemption of the Bonds at the applicable call price within 10 business days of receipt.

●      The Company is not required to make the interest payments in respect of the interest payment dates falling on 26 May 2026 and 26 August 2026. The interest rate remains unchanged for any period thereafter.

●      The maintenance covenant, calculated as the Group’s net interest bearing debt to consolidated EBITDA, is increased from 4.00:1 to 4.50:1.

●      Consequential amendments will be made to the intercreditor agreement and the terms and conditions for the Bonds.

The Amendments will become effective once a formal written procedure under the Bonds has been completed and approved by a requisite majority of the holders of the Bonds. The Company intends to initiate a written procedure under the Bonds in the near future to request the bondholders’ consent for the implementation of the Amendments. The launch and subsequently the outcome of such written procedure will be announced by way of separate press releases.