Lehto Group Plc
Stock exchange release
11 March 2022, 6.30 p.m. (EET)
Lehto has a Revolving Credit Facility (RCF) with a bank syndicate comprising OP Corporate Bank plc, Nordea Bank plc and Swedbank AB. The RCF is in force until 31 December 2022 and EUR 25.1 million of the facility is in use. No further funds can be withdrawn from the RCF. According to the agreement, some of the credit will be paid back before the end of the contractual period and part of the credit will fall due at the end of the agreement. The agreement includes both partial guarantees and financial covenants on EBITDA, interest-bearing net debt and net gearing as well as other covenants. These covenants may also impact the distribution of dividends while the RCF is in force.
At the end of the financial year 2021, the covenant terms of the RCF were not met, and Lehto had permission from the bank syndicate to temporarily exceed the covenant limits set in the agreement.
As part of its financial statements bulletin, released on 17 February 2022, Lehto announced that it is having negotiations with the banks to refinance the RCF, and that the company had agreed with the banks that 11 March 2022 is the deadline by which the company and the banks will seek to create a financing solution that will enable the company to implement its strategy.
As agreed, in the beginning of year 2022 Lehto and the banks have been in negotiations and have today signed an agreement to continue the financing negotiations. The company will publish the outcome of the negotiations as they have been concluded.
Chief Financial Officer
Tel. +358 400 944 074