Logistea completes refinancing activities and delivers significant interest cost reductions
Logistea has as of today 13th December successfully repaid its NOK 900 million senior secured bond. The refinancing, executed through a combination of a newly issued green bond of SEK 600 million and additional bank financing facilities, marks a significant milestone in the company's strategic focus on capital optimisation and competitive financing costs.
Since the merger with KMC Properties (“KMC”) in July, Logistea has pursued to achieve a more optimised debt structure as part of its overall synergy realisation strategy and important rational of the merger. By securing favourable financing terms, and through supportive market conditions, Logistea has so far achieved an annual interest cost reduction of approximately SEK 58 million since the merger was completed in July 2024. The improvement in annual net finance cost alone since end of Q3 2024 amount to SEK 29 million, excluding the positive effects from lower base rates. Run rate PFPM per share, as reported per Q3 adjusted for these recent additional cost reductions, including committed adjusted margins from lenders, amounts to SEK 1.00 per share, compared to 0.94 per share which was reported as run rate in the Q3 report. In addition, the refinancing process has resulted in additional cash which can be used for new acquisitions, supporting Logistea’s growth strategy.
“I am delighted to see our organisation delivering on the synergies we earlier identified as value inflecting points in the merger with KMC. Overall, our interest margin has been reduced from 2.61 percent to 2.05 percent since the merger with KMC, which improves Logistea’s run rate significantly,” said Niklas Zuckerman, CEO of Logistea.
In addition to the repayment of the NOK 900 million bond, Logistea has undertaken several initiatives, including more optimised bank facilities and restructuring parts of its interest rate swap portfolio, further enhancing its financial strength. The average total interest rate has since the merger with KMC been reduced from 5.87 percent to 5.08 percent.
“The inclusion in the EPRA index in September is a testament to our strengthened position in the market. We are on track with our overall synergy realisation plan set out during the merger with KMC, with further earning improvements expected going forward”, said Niklas Zuckerman
Logistea remains committed to continue optimising its capital structure, realising synergies supporting earnings growth, and pursuing growth opportunities aligned with its strategic priorities and targets.
Logistea will release the Year end report 2024 as of February 13th.