Ovzon: Encouraging credit facility - ABG

* New credit facility (SEK 300m + 300m) with promising terms * 3m STIBOR +2.2-2.9% (previously USD 3m LIBOR +10%) * Reduces annual interest by ~SEK 60m
Replaces the current USD 65m debt with P Capital Partners
Encouragingly, Ovzon has today announced that it has signed a facilities agreement with Danske Bank to refinance existing loans, including a SEK 300m term loan and a SEK 300m revolving credit facility. The new terms are 3m STIBOR + 2.2-2.9%, which is significantly lower than the current interest rate of USD 3m LIBOR + 10% with P Capital Partners. The transaction is expected to be completed in Q3 2025.
Interest to be reduced by ~70%
Currently, Ovzon pays an annual interest rate of ~SEK 90m on its USD 65m (~SEK 610m) debt. Based on the new structure and using the mid-point (3m STIBOR + 2.55%), we calculate that this will be reduced by ~70% (SEK ~60m) to ~SEK 30m per year, equivalent to SEK 0.5/share.
Strong signal value
The announcement is positive not only from a cash flow point of view, but also shows that Ovzon is in a significantly different position today than historically, as it involves refinancing with bank debt. Based on recent orders, we anticipate marked improvements in sales, margins, and FCF in 2025e-2026e. We expect to hear more about this progress during its CMD on 4 September.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ovzon/equity-research/2025/9/ovzon---encouraging-credit-facility/