HELSINKI, FINLAND: Delete Group Oyj together with its financial adviser, ABG Sundal Collier ASA, initiated certain restructuring measures.
On 15 January 2021, Delete announced that the holders of its secured fixed rate notes due 2021 approved certain amendments requested by Delete to the terms and conditions of the Notes by which the relevant Restructuring Measures will be implemented into the Terms and Conditions.
The effectiveness of the amendments to the Terms and Conditions is conditional on the satisfaction of certain conditions precedent, which include, among others, an immediate redemption of the Notes in an aggregate amount of EUR 15,000,000.
The Redemption will be financed by funds received primarily from new equity invested by the shareholders of the Issuer in an aggregate amount of at least EUR 10,000,000 and EUR 5,000,000 out of the proceeds received from the sale of Delete Demolition Oy.
Furthermore, Delete has committed to make a further redemption of EUR 10,000,000 by funds obtained from receivables sold under a non-recourse factoring facility of the Group after the amendments to the Terms and Conditions have been satisfied.
Such redemptions will be made in two installments of EUR 5,000,000 once the Factoring Receivables reach EUR 5,000,000 and EUR 10,000,000 thresholds or by 30 April 2021 and 31 May 2021, respectively, at the latest.
Delete announces today the status and tentative timeline of the Restructuring Measures:
- The closing of the Demolition Sale is expected to take place on 29 January 2021.
- In the extraordinary general meeting held on 15 January 2021, Delete’s shareholders resolved on the issuance of the New Equity and Delete is currently waiting for the subscription period of new shares to end. Delete has been informed that its main shareholder Ax DEL Oy has received the required investment commitment, and is willing, to subscribe the entire New Equity.
- Delete expects that the condition regarding the Redemption will be satisfied on or about 5 February 2021 when the funds received from the Demolition Sale as well as the New Equity have been obtained and paid to a blocked account held with the paying agent to be used to execute the Redemption (the “Redemption Date”).
- Delete has entered into a EUR 20,000,000 million Factoring Arrangement. Delete has made good progress utilizing the Factoring Arrangement and the first EUR 5,000,000 threshold has been reached. Therefore, the first EUR 5,000,000 payment financed by Factoring Receivables sold under the Factoring Arrangement is likely to be paid in connection with the Redemption.
- Delete is currently negotiating the loan documentation for a new super senior revolving credit facility to replace its current super senior revolving credit facility and it expects such replacement to be in place shortly after the Redemption Date. Therefore, Delete has informed the Noteholders’ agent, Nordic Trustee, that it will use its right to waive in its entirety the condition that the replacement of the super senior revolving credit facility will need to be in place before the amendments to the Terms and Conditions come into effect.
Delete expects that the conditions for effectiveness of the amendments to the Terms and Conditions will be satisfied on the Redemption Date.
The record date on the basis of which the payments will be made to the Noteholders is expected to be 11 February 2021 and the payments to the Noteholders are expected to be carried out on 12 February 2021. The above presented timeline is only an estimate, and thus it is still subject to amendments for various reasons.
Delete Group is one of the leading environmental service providers in the Nordics. After the Demolition Sale, the group offers business-critical client services, which require specialist competences and specialized equipment through two business areas: Industrial Cleaning Services and Recycling Services.
The Delete Group is headquartered in Helsinki and employs approximately 700 professionals at over 35 locations in Finland and Sweden after the Demolition Sale.
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