Credit facilities agreement
In September 2020, Elmera Group entered into a new facilities agreement, which includes the following credit facilities;
- a NOKt 1 000 000 term loan - the acquisition facility
- a NOKt 500 000 revolving credit facility
- a NOKt 2 250 000 guarantee facility
- a NOKt 1 000 000 overdraft facility
The term loan - NOKt 1 000 000 - The acquisition facility
In November 2021 Elmera Group used the option to extend the termination date of the loan, the new termination date of the loan is in September 2024. Elmera Group has the option to extend the termination date by another period of twelve months. Each term loan drawn upon the facility is to be repaid in quarterly repayments of 2,5 % of the original amount of the term loan, with the remainder being repaid in full on the termination date. The reference interest rate is NIBOR.
NOKt 460 000 was drawn upon this facility in September 2020, in order to repay a former term loan, and to partly finance the aquisition of Innlandskraft AS. In November 2020 additional NOKt 477 000 was drawn upon the facility in order to partly finance the aquisition of Troms Kraft Strøm AS. The term loan principals are being repaid in quarterly instalments of total NOKt 23 425. The first quarterly instalment was repaid in December 2020. At 31 December 2021 the remaining term loan principal balance was NOKt 819 875
The revolving credit facility - NOKt 500 000 - The RCF
The revolving credit facility is available up until one month before the termination date. In November 2021 Elmera Group used the option to extend the termination date, the new termination date is in September 2024. Elmera Group has the option to extend the termination date by another period of twelve months. Any drawings for the purpose of financing permitted acquisitions shall be converted into term loan drawings with the same repayment profile as the acquisition facility, and amounts so converted shall not be available for re-drawing.
At 31 December 2021 the total revolving credit facility of NOKt 500 000 was undrawn.
The guarantee facility - NOKt 2 250 000
The purpose of the guarantee facility is the issuance of guarantees and letters of credit for the general corporate and working capital purpose of the group, hereunder gurantees related to re-invoicing agreements with grid owners, property rental agreements and so on. In November 2021 Fjordkraft used the option to extend the termination date, the new termination date is in September 2024. Elmera Group has the option to extend the termination date by another period of twelve months. At 31 December 2021 guarantees of total NOKt 2 024 135 were issued under the guarantee facility.
The overdraft facility - NOKt 1 000 000
The overdraft facility has been renewed and is available one year from September 2021. At 31 December 2021 the overdraft facility was undrawn.
The groups trade receivables has been pledged as security for all credit facilities under the new facilities agreement.
Under the new credit facility, there is a leverage covenant that applies at all times, and which shall be calculated quarterly based on consolidated numbers. A leverage ratio is to be calculated as total long term interest bearing debt to rolling 12 month EBITDA adjusted. The leverage ratio shall not exceed:
- more than 2,5 in respect of more than one quarter-end during any financial year, and
- more than 2,0 in respect of the remaining three quarter-ends during any such financial year.