Hoist Group Holding Intressenter AB (publ) instigates a written procedure in order to inter alia amend the terms and conditions of its senior secured callable floating rate bonds

Hoist Holding Intressenter AB (publ) (the “Issuer”, and together with its subsidiaries, the “Group”) has today instructed Nordic Trustee & Agency AB (publ), agent for the Issuer’s SEK 500,000,000, up to SEK 1,000,000,000, senior secured bonds with ISIN SE0010101576 (the “Bonds”), to instigate a written procedure to resolve on certain amendments to the terms and conditions of the Bonds and certain amendments to a share pledge agreement in respect of the shares in the Issuer, entered into between the Agent and the Issuer (the “Share Pledge Agreement”) (the “Written Procedure”).

The proposed amendments are motivated by an anticipated increase in the Group’s working capital requirements in the short to medium term, driven by a combination of (i) the ongoing roll-out of the Group’s Software as a Service (SaaS) strategy, which results in lower upfront customer payments but higher recurring subscription revenues, (ii) temporarily longer payment terms extended to certain customers during the ongoing COVID-19 pandemic, and (iii) a potential acquisition which the Group is currently negotiating (the “Potential Acquisition”). Should it materialize, the Potential Acquisition will be financed in its entirety through the issue to the vendors of new shares in the Issuer (the “Share Issue”).

As further described in the notice of written procedure published by the Issuer and the Agent today and distributed to holders of the Bonds (“Bondholders”) (the “Notice of Written Procedure”), the Issuer proposes that Bondholders by way of the Written Procedure resolve on the following (the ”Adjustments”):

  • An increase of the permitted size of the Issuer´s working capital facility by
    SEK 40,000,000, from SEK 75,000,000 to SEK 115,000,000; and
  • Certain amendments to the Share Pledge Agreement in order to enable the Potential Acquisition and the Share Issue, with the final wording to be agreed between the Agent and the Issuer.

In exchange for Bondholders’ approval of the Adjustments, the Issuer has agreed to a margin adjustment of plus 1.00 per cent per annum to take effect upon utilisation of the working capital facility in excess of SEK 75,000,000 (the “Margin Step-up”). The Issuer furthermore seeks Bondholders’ approval for certain amendments to the terms and conditions in order to enable such Margin Step-up (together with the Adjustments, the “Proposal”).

For a full description of the Proposal, see the Notice of Written Procedure published on the Issuer’s website.

Pareto Securities AB has been retained as financial advisor in connection with the Written Procedure.

For more information please contact:
Magnus Lindholm, CFO, Hoist Group
Email: magnus.lindholm@hoistgroup.com

Hoist Group provides technology solutions to hotels, enabling them to manage coherent end-to-end digital journeys for their guests. Hoist Group optimizes guest services by correlating and analyzing the data that comes from its innovative Property Management & Booking Software, Managed IP Networks, Internet and TV Content as well as from many other digital touchpoints. Headquartered in Stockholm with 20 offices across EMEA, Hoist Group has nearly 500 dedicated staff serving over 8,000 unique hotels.