(Oslo, 19 November 2024) Axactor ASA (Axactor, OSE: ACR) has entered into an
accretive EUR 83 million sale of NPL portfolios in Spain. In parallel, the
company announces an anticipated negative revaluation of the remaining
portfolios for the fourth quarter 2024.
Axactor has entered into a binding agreement to sell NPL portfolios for a total
of EUR 83 million, representing a 2% premium over book value. The transaction
represents approximately 6% of Axactor's total NPL portfolio and the proceeds
from the transaction will be used to reduce debt. The positive impact on cash
metrics, such as cash EBITDA*, is significant, supporting covenant compliance
for at least the next four quarters.
"We believe this transaction demonstrates Axactor's commitment to enhancing
financial stability while navigating challenging market conditions. This
strategic sale not only supports covenant compliance but also provides
flexibility to manage our portfolio proactively," says CEO Johnny Tsolis.
Additionally, as part of the routine quarterly NPL revaluation process, Axactor
has booked a net negative NPV of changes in collection forecasts of EUR 12
million so far in the fourth quarter, and October collections ended EUR 3
million below forecasts (corresponding to a collection performance of 90%).
Further meaningful negative revaluations are anticipated before quarter-end, and
will be published as part of the fourth quarter 2024 report. The revaluations do
not have any cash impact, and as such do not impact neither the interest
coverage nor the leverage ratio covenants. There is sufficient headroom under
the loan-to-value covenants to remain compliant also after the anticipated
revaluations.
Together, these actions provide the company with a strengthened covenant
position, further reinforcing the balance sheet.
Axactor will report the fourth quarter 2024 financial figures 14 February 2025.
For additional information, please contact:
Johnny Tsolis, CEO, Axactor
Tel: +47 913 35 461
E-mail: johnny.tsolis@axactor.com
Kyrre Svae, Chief of Strategy & IR, Axactor
Tel: +47 478 39 405
E-mail: kyrre.svae@axactor.com
To learn more about Axactor, visit www.axactor.com
*Cash EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section on page
36-38 of the third quarter financial report.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Kyrre Svae, Chief of Strategy & IR at Axactor ASA,
on 19 November 2024 at 07:00 CET.