Sanoma reorganizes its financing
Summary
- Sanoma has secured a 220 MEUR syndicated term loan facility maturing in March 2029, with two one-year extension options, to refinance existing debt.
- The company plans to use the loan to prepay a 119 MEUR term loan and repay a hybrid bond maturing in March 2026, aligning with its strategy to reduce net financing costs.
- Refinancing with debt financing, which typically has a lower interest rate than hybrid loans, is expected to lower Sanoma's average interest rate and overall net financing costs.
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Translation: Original published in Finnish on 12/8/2025 at 7:40 am EET.
The company will use the new 220 MEUR loan facility to repay two old loans, which is in line with our expectations and will, in our estimation, reduce its net financing costs.
New loan to be used to repay old loans
Sanoma announced on Friday that it had signed a 220 MEUR syndicated term loan facility with a maturity date in March 2029, including two one-year extension options. Sanoma intends to use the obtained loan funds, together with improved operating cash flow, to prepay its 119 MEUR term loan in the current month and repay its outstanding hybrid bond, which matures in March 2026.
Our estimates included refinancing the hybrid loan with debt financing
Refinancing with debt financing, which typically bears a lower interest rate than hybrid loans based on equity financing, is in line with the company's previous communications. Thus, the financing arrangement now announced aligns with the scenarios based on our estimates, and we believe it will lower the average interest rate on all of the company's loans and consequently its overall net financing costs. The company paid a fixed interest rate of 8% on the hybrid loan, whereas the interest rate on debt financing is lower, according to our estimates (cf. the average interest rate on external loans in Q3’25 was 3.7%).
Sanoma is an innovative and agile learning and media company with two business segments: Learning and Media Finland. Learning's educational products and services reach 25 million students in K-12 education in 12 European countries. Media Finland has Finland's leading multichannel media offering (digital and print newspapers, magazines, TV and streaming services, and radio and audio services), through which it reaches 97% of Finns every week, enabling effective marketing solutions for corporate clients. The company's operations have a positive impact on the lives of millions of people every day.
Read more on company pageKey Estimate Figures2025-10-30
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 1,344.7 | 1,307.7 | 1,301.6 |
| growth-% | -3.5 % | -2.8 % | -0.5 % |
| EBIT (adj.) | 143.3 | 153.9 | 181.0 |
| EBIT-% (adj.) | 10.7 % | 11.8 % | 13.9 % |
| EPS (adj.) | 0.52 | 0.56 | 0.76 |
| Dividend | 0.39 | 0.42 | 0.43 |
| Dividend % | 5.1 % | 4.9 % | 5.0 % |
| P/E (adj.) | 14.9 | 15.4 | 11.4 |
| EV/EBITDA | 6.0 | 6.0 | 5.8 |
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