Inside Information: YIT signs a EUR 140 million term loan and plans to redeem the bond maturing in spring 2024, the Board will not propose profit distribution to the AGM
YIT Corporation (“YIT” or “Company”) has today signed a new EUR 140 million term loan facility agreement. The new loan will replace previous loans totaling EUR 150 million maturing in late 2023 and spring 2024. The new loan is secured and will mature in April 2025.
The Board of Directors of YIT has assessed the industry’s business cycle, prevailing market conditions and the Company’s projected cash flow, and determined based on these factors that it will not propose profit distribution for the financial year 2023 to the Annual General Meeting to be held in March 2024. Also the loan agreement signed today includes restrictions to distribute funds based on the Company’s leverage ratio.
The loan agreement includes or will include liquidity, interest coverage ratio and gearing related financial covenants which are reviewed depending on the financial covenant either on a monthly basis or on a quarterly basis.
“The financing arrangement and the decision not to propose profit distribution support our operative business, strengthen our financial position and add flexibility to our financing structure. I am very pleased with the successful completion of this financing arrangement and the opportunities it brings for the further development of the Company,” said Tuomas Mäkipeska, CFO, YIT.
The coordinators for the loan agreement were OP Corporate Bank and SEB. OP Corporate Bank, SEB, and Swedbank act as mandated lead arrangers.
YIT aims to lower the indebtedness through its previously announced capital efficiency program. The Company has potential to release approximately EUR 400 million of capital by the end of 2024. In addition to the term loan facility agreement signed today, as part of the measures aiming to lower the indebtedness, YIT plans to redeem the EUR 100 million unsecured bond maturing on 31 March 2024.
For further information:
Tuomas Mäkipeska, CFO, YIT, media enquiries through Group Communications, tel. +358 44 743 7536, email@example.com
Distribution: Nasdaq Helsinki, principal media, www.yitgroup.com
YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, infrastructure for smooth mobility, and renewable energy solutions to benefit the climate. We employ around 5,000 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2022 was EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com