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Endur ASA

Committed refinancing offer

By 29.01.2025No Comments

29 January 2025 – Endúr ASA (“Endúr”) has today received and accepted a committed refinancing offer (“The refinancing offer”) from its existing bank syndicate, consisting of Sparebank 1 Sør-Norge and Sparebank 1 SMN(collectively “Sparebank 1”). On that occasion, Endúr will seek to enter into a renewed and improved loan agreement with Sparebank 1.

In addition to certain guarantee, currency and leasing facilities, The refinancing offer includes term loans of NOK 600 million to refinance all Endúr’s current bank loans. The term loans (“Facility A”) will be partly nominated in NOK (300 million) with 3-month NIBOR as reference interest rate and partly nominated in SEK (300 million) with 3 month STIBOR as reference interest rate. The term loans will be amortized over 10 years, yielding quarterly installments of NOK 15 million. As such, current quarterly installments will be reduced with 50% going forward. The term loans will have a maturity of 3 years with 1+1 year renewal options.

Furthermore, The refinancing will increase Endúr’s current overdraft facility to NOK 250 million (“Facility C”). The refinancing offer also includes a facility set aside for financing of future acquisitions (“Facility B”), of which NOK 50 million is intended to be utilized in relation to the recent acquisition of VAQ.

The refinancing offer includes financial covenants in form of a required minimum equity ratio of 30%, identical to the requirement under Endúr’s current financing, and a maximum leverage ratio, the latter being defined as net interest-bearing debt excl. leasing liabilities (subject to certain adjustments) divided by pro forma LTM earnings before interests, taxes, deprication and amortization (“EBITDA”, excluding net effects from IFRS 16 and subject to certain other adjustments):

Utilization – 31 March 2025 < 3.30x
1 April 2025 – 31 December 2025 < 3.00x
1 January 2026 – Maturity < 2.50x

Interest rate margins for Facility A/B and Facility C, will be:

Leverage ratio 0.00x – 1.50x: 260 bps / 160 bps
Leverage ratio 1.51x – 2.00x: 270 bps / 170 bps
Leverage ratio 2.01x – 2.50x: 285 bps / 180 bps
Leverage ratio 2.51x – 3.30x: 305 bps / 195 bps

On basis of Endúr’s Q3 2024 balance sheet, the refinancing will yield a blended interest rate margin reduction of approximately 100 bps.

The refinancing opens for periodic dividend payments of up until 50% of consolidated earnings after tax (“EAT”). A more detailed loan agreement will include baskets for permitted indebtedness, continued share buy-backs and M&A activities.

“This refinancing offer represents another important milestone for Endúr, serving as a testament to our history of profitable growth and solid cash conversion. We are particularly pleased with the prospect of prolonging what has been a highly successful partnership with Sparebank 1”, says Jeppe Raaholt, CEO of Endúr.

The refinancing will be subject to Endúr’s board approval of a new loan agreement and is expected to close by the end of February this year.

For further information, please contact:

Media – Jeppe Raaholt, CEO, tel: +47 976 69 759

Investors – Einar Olsen, CFO, tel: +47 924 01 787