Brief: XXL Updates On Waiver Agreement With Bank Consortium, Exit From Austrian market

Xxl AS

21/12/2022 06:47

Dec 21 (Reuters) - XXL ASA  XXL.OL :
    * WAIVER AGREEMENT WITH BANK CONSORTIUM, FULLY UNDERWRITTEN
SHARE
ISSUE, TRADING UPDATE AND AUSTRIA EXIT
    * ONLY LIQUIDITY COVENANTS WILL APPLY FROM DECEMBER 2022 TO
NOVEMBER 2023 BEFORE RETURNING TO LEVERAGE COVENANT IN DECEMBER
2023
    * AGREEMENT IS SUBJECT TO COMPANY RAISING A GROSS AMOUNT OF
NOK
500 MILLION IN NEW EQUITY
    * UPDATES MARKET ON ITS Q4 2022 TRADING
    * OPERATING REVENUE FOR Q4 IS EXPECTED TO BE IN RANGE OF NOK
2.3-2.4 BILLION WITH SIGNIFICANTLY LOWER GROSS MARGINS
    * SHALL EXIT AUSTRIAN MARKET DURING 2023
    * LIQUIDITY RESERVES BY END OF DECEMBER 2022 ARE ESTIMATED
TO BE
AROUND NOK 600 MILLION
    * NOW CONCLUDED ITS STRATEGIC REVIEW PROCESS OF XXL'S
OPERATIONS
IN AUSTRIA AND DECIDED THAT COMPANY SHALL EXIT AUSTRIAN MARKET
DURING 2023
    * LIQUIDITY COVENANT ONLY FROM DECEMBER 2022 TO NOVEMBER
2023,
BEING IN RANGE OF NOK 200-300 MILLION IN H1 2023 AND NOK 400-600
MILLION IN H2 2023
    * NO DISTRIBUTION OF DIVIDENDS OR SHARE BUY-BACK DURING
WAIVER
PERIOD ENDING NOVEMBER 2023
    * ENTERED INTO AN UNDERWRITING AGREEMENT ("UWA") SECURING
NOK 500
MILLION IN GROSS PROCEEDS FROM A PRIVATE PLACEMENT OF NEW SHARES
    * AFTER ISSUE, MAXIMUM PRINCIPAL AMOUNT THAT MAY BE
OUTSTANDING
UNDER LOAN FACILITIES WILL BE REDUCED FROM NOK 1.8 BILLION TO
NOK 1.3 BILLION
    * FOLLOWING COMPLETION OF PRIVATE PLACEMENT, BOARD WILL
CONSIDER A
SUBSEQUENT OFFERING OF NEW SHARES
    * SUBSCRIPTION PRICE IN PRIVATE PLACEMENT WILL BE SET BY
BOARD, IN
CONSULTATION WITH MANAGERS, FOLLOWING BOOKBUILDING FOR PRIVATE
PLACEMENT
    * ESTIMATES TOTAL OPERATING REVENUES FOR GROUP IN Q4 2022 TO
BE IN
RANGE OF NOK 2.3-2.4 BILLION (NOK 2.7 BILLION)
    * EBITDA FOR QUARTER IS EXPECTED TO BE IN RANGE OF NOK
50-100
MILLION (NOK 403 MILLION) BEFORE EFFECTS DERIVING FROM EXIT OF
AUSTRIAN MARKET AND WRITE-DOWN OF INVENTORY
    * AMBITION IS AT LEAST NOK 120 MILLION IN COST SAVINGS IN
2023,
BUT THIS WILL BE PARTLY COUNTERACTED BY INCREASED ENERGY PRICES
AND KPI ADJUSTMENTS UNDER RENTAL CONTRACTS
    * TARGETS TO REDUCE CAPEX, EXPECTED TO BE AROUND NOK 150-200
MILLION PER YEAR GOING FORWARD

Source text for Eikon:  ID:nObimG8G5a 
Further company coverage:  XXL.OL 
 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 7696600;))