Enersense's financing arrangement received approval from noteholders

Translation: Original published in Finnish on 12/5/2025 at 7:50 am EET.

Enersense announced on Thursday that its noteholders' meeting had approved the company's proposal on amending the terms and conditions of its convertible notes. This decision was anticipated and will also allow the company to implement its broader financing package. Furthermore, after the market closed, Enersense announced that it will also carry out the previously communicated tap issuance. Overall, these arrangements will strengthen the company's balance sheet and secure its financing for the coming years.

Financing package completed as expected, company also issues additional 4 MEUR

The meeting of noteholders, convened by Enersense, approved a proposal to amend the company's outstanding 26 MEUR senior unsecured convertible bond into a subordinated hybrid convertible bond. The amendments took effect immediately. With this approval, the terms of the new financing package, which was previously negotiated by the company, were also fulfilled. The new financing package is comprised of a 16 MEUR term loan and an 8 MEUR revolving credit facility, both maturing in 2028, as well as guarantee lines amounting to 40 MEUR at maximum. Approval of the arrangement was widely expected since the company had previously stated that it expected approximately 80% of noteholders to support the proposal.

Later, after the stock market closed, the company announced that it would also issue additional convertible capital notes with a nominal value of 4 MEUR as a so-called tap issuance, the proceeds of which will be used for general corporate purposes. This tap issuance of 4 MEUR was also part of the previously communicated package. With the tap issuance, the total nominal amount of the notes is 30 MEUR.

Balance sheet position strengthens significantly

The main effect of the arrangement is to strengthen Enersense's balance sheet position. The hybrid bond is treated as equity under IFRS accounting, which improves the company's equity ratio significantly, among other things. In our view, this was also a key factor in obtaining new bank financing. At the same time, the maturity profile of the financing will be extended, providing the company with breathing room to implement its strategy. The financing arrangement was implemented on the previously announced terms, and our earlier detailed comments on the arrangement and its terms can be found here. As we have previously commented, we consider the terms of the arrangement to be reasonably neutral in the current situation. We will update our forecasts to reflect the financing arrangement in the coming weeks.