Axactor ASA: Sale of NPL portfolios

Axactor has entered into a binding agreement to sell NPL portfolios for a total of EUR 83 million, representing a 2% premium over book value. The transaction represents approximately 6% of Axactor's total NPL portfolio and the proceeds from the transaction will be used to reduce debt. The positive impact on cash metrics, such as cash EBITDA*, is significant, supporting covenant compliance for at least the next four quarters.

"We believe this transaction demonstrates Axactor's commitment to enhancing financial stability while navigating challenging market conditions. This strategic sale not only supports covenant compliance but also provides flexibility to manage our portfolios proactively," says CEO Johnny Tsolis.

Additionally, as part of the routine quarterly NPL revaluation process, Axactor has booked a net negative NPV of changes in collection forecasts of EUR 12 million so far in the fourth quarter, and October collections ended EUR 3 million below forecasts (corresponding to a collection performance of 90%). Further meaningful negative revaluations are anticipated before quarter-end, and will be published as part of the fourth quarter 2024 report. The revaluations do not have any cash impact, and as such do not impact neither the interest coverage nor the leverage ratio covenants. There is sufficient headroom under the loan-to-value covenants to remain compliant also after the anticipated revaluations.

Together, these actions provide the company with a strengthened covenant position, further reinforcing the balance sheet.

Axactor will report the fourth quarter 2024 financial figures 14 February 2025.

*Cash EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section on page 36-38 of the third quarter financial report.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Kyrre Svae, Chief of Strategy & IR at Axactor ASA, on 19 November 2024 at 07:00 CET.