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Legres announces breach of financial covenants and resulting event of default under its senior secured bonds

Legres announces breach of financial covenants and resulting event of default under its senior secured bonds

Legres AB (publ) (the “Company”) announces that it is in breach of two of the financial covenants under the terms and conditions (the “Terms and Conditions”) of its SEK 325 million senior secured bonds with ISIN SE0020388700 (the “Bonds”). Capitalised terms used herein shall have the meanings ascribed to them in the Terms and Conditions.

As of the relevant testing date of 31 March 2025 (the “Test Date”), the Company did not comply with the following financial covenants under the Terms and Conditions:

  • The Company was required to maintain an Interest Coverage Ratio (being EBITDA to Net Finance Charges) of at least 2.00:1. As of the Test Date, the Interest Coverage Ratio was 1.48.
  • The Company was required to maintain a leverage ratio (being Net Interest Bearing Debt to EBITDA) not exceeding 3.25:1. As of the Test Date, the leverage ratio was 5.19.

As a result of these covenant breaches, an event of default has occurred under the Terms and Conditions of the Bonds (the “Event of Default”).

To address the situation arising from the Event of Default and to find a sustainable long-term solution, the Company has resolved to initiate a strategic review process and has mandated ABG Sundal Collier AB (“ABGSC”) to act as its financial advisor in the strategic review, which will include an evaluation of potential asset disposals and changes to the Company’s ownership structure. ABGSC will also assist the Company in its discussions with Bondholders regarding the Event of Default.

For more information, please contact:

Klaus Reimer, CEO
+45 40 99 55 25
klaus.reimer@sergel.com

This information is information that Legres AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 27 May 2025 16:30 CEST.