EEZY PLC -- STOCK EXCHANGE RELEASE - 30 APRIL 2025 AT 13:15
Inside information: Eezy Plc has completed its financing negotiations
Eezy Plc ("Eezy" or the "Company") has today 30 April 2025 agreed with the Company's existing financiers Varma Mutual Pension Insurance Company ("Varma") and Nordea Bank Plc ("Nordea") on the renewal of the Company's current financing arrangements.
As part of its financial statements announcement on 13 February 2025, Eezy announced that it was negotiating with the financiers with the purpose of stabilising the Company's financial position and supporting growth. These negotiations have now been successfully concluded.
As part of the agreed arrangement, EUR 10,000,000 of the senior loans previously granted by Varma to the Company will be converted into a new junior loan ("Junior Loan") and new covenant levels applicable to all loans to the Company have been agreed with Nordea and Varma. The term of the current senior financing (other than the Junior Loan) remains unchanged, with the senior loans maturing in 2028. In addition, Varma and Nordea have granted a separate waiver to the Company regarding a potential covenant breach as at the covenant testing date of 31 March 2025, and thus a potential covenant breach as per 31 March 2025 does not entitle the lenders to accelerate the loans.
The Junior Loan has a maturity of five (5) years. The Company has the right (subject, however, to the consent of its senior lenders), but not the obligation, except in certain specific circumstances, such as in the case of an ongoing event of default, to prepay the Junior Loan. Varma has the right to convert up to EUR 3,000,000 of the from time to time outstanding principal amount of the Junior Loan to new shares in the Company in accordance with the terms of the special rights attached to the Junior Loan (the "Conversion Right"). Varma's Conversion Right will commence after three years, i.e. 30 April 2028 (the "Conversion Right Commencement Date") and will continue until the maturity date of the Junior Loan, i.e. 30 April 2030, unless the Junior Loan has been repaid before then. Varma may also exercise its Conversion Right prior to the Conversion Right Commencement Date, if an event of default under the terms of the Junior Loan occurs, and such early Conversion Right shall remain in effect for so long as the event of default is continuing. Varma may exercise its Conversion Right by giving notice to the Company (a "Conversion Notice").
In order to exercise the Conversion Right in relation to the Junior Loan, the Board of Directors of the Company has, pursuant to the authorisation granted by the Annual General Meeting of the Company on 8 April 2025, resolved to issue to Varma special rights entitling to a maximum of 1,000,000 shares (the "Special Rights"). Each Special Right entitles the holder to subscribe for one new share by setting off the principal amount of the Junior Loans against the subscription price. The subscription price for one share corresponds to the volume-weighted average price (VWAP) of the Company's shares on the stock exchange list maintained by Nasdaq Helsinki Ltd for the six (6) months preceding the Exchange Notice reduced by ten (10) per cent. The Subscription Price may be adjusted in certain circumstances subject to the terms and conditions of the Special Rights. If Varma exercises its Conversion Right, this will have a dilutive effect on existing shareholdings. The dilutive effect depends on the amount of the Junior Loan converted under the Conversion Right, the Subscription Price and any adjustments to the Subscription Price under the terms of the Special Rights. However, Varma may not subscribe for more than 1,000,000 shares under the Conversion Right, representing approximately four (4) per cent. of the Company's currently outstanding shares.
"We are very pleased with the solution reached with the existing financiers. This financing solution will stabilize the financial situation of the Company and we will continue the good cooperation with our existing financiers. This financing solution, together with the announced profit improvement programme, creates a solid basis for the company's future growth", comments Joni Aaltonen, CFO of Eezy Plc.
Further information:
Siina Saksi
CEO
siina.saksi@eezy.fi
tel. +358 50 550 3912
Joni Aaltonen
CFO
joni.aaltonen@eezy.fi
tel. +358 40 524 7270
Eezy is Finland's largest work life expertise company, whose mission is to build good working life. Eezy serves its clients in areas such as staffing, corporate culture design, leadership development, recruitment, employment services and personnel surveys. In 2024, Eezy had a revenue of €174 million, the company employed 22 000 people, carried out thousands of organisational development projects and analysed up to 200,000 employee survey responses. Eezy's shares are listed on Nasdaq Helsinki. The company reports its CSRD compliant sustainability statement annually as part of its financial statements. For more information see: www.eezy.fi