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Transcom Holding AB (publ) (“Transcom") has today signed a new senior secured term loan facility agreement of EUR 20 million with Nordea Bank Abp, filial i Sverige as lender (the “Term Facility”).
The net proceeds of the Term Facility will be applied towards the refinancing of revolving loans outstanding under Transcom’s existing EUR 45 million super senior revolving facility (the “Super Senior RCF”). The refinancing will make funds available for re-drawing under the Super Senior RCF and consequently provides an additional liquidity buffer for any unforeseen events which may occur. Furthermore, the Term Facility provides an alternative source of funding under circumstances where a tap issue of additional notes under Transcom’s senior secured fixed rate notes due March 22, 2023 (ISIN SE0010832071) (the “Notes”) may not be carried out at favorable terms or at all due to current volatility in the market for high yield bonds.
The Term Facility will be made available subject to customary conditions precedent, will rank pari passu with Transcom’s Super Senior RCF and the Notes and will share the security and guarantees provided for the Super Senior RCF and the Notes in accordance with the provisions of an existing intercreditor agreement which the lender under the Term Facility will accede to. In connection with the incurrence of the Term Facility, the “Incurrence Test” has been tested and met in accordance with the terms and conditions of the Notes. The maturity date of the Term Facility is March 22, 2023.
This information is information that Transcom is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 22:25 CEST on March 31, 2020.