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Ovzon secures additional debt and receives interest for equity financing

03 February 2023 - 21:21

Ovzon AB has secured additional financing, to finalize and launch the Ovzon 3 satellite, by increasing the current loan facility with P Capital Partners from USD 60 million to USD 65 million and through confirmed interest from several major shareholders, including Öresund, Bure, Handelsbanken Fonder, Fourth AP-fund and AFA Försäkring, to subscribe for SEK 200 million in an equity issue.

Today, in a separate press release, Ovzon announced the delay of the Ovzon 3 satellite and the subsequent shift to SpaceX as launch provider. As a consequence, Ovzon estimates an increased cost of the Ovzon 3 project with approximately USD 25 million. Ovzon has therefore secured financing by (i) increasing the current loan facility with P Capital Partners from USD 60 million to USD 65 million and (ii) confirmed interest from several major shareholders, including Öresund, Bure, Handelsbanken Fonder, Fourth AP-fund and AFA Försäkring, to subscribe for SEK 200 million in an equity issue. The company expects to provide more information on the new share issue in the near term and has appointed Carnegie Investment Bank as financial advisor.

The loan from P Capital Partners is denominated in USD, the remaining tenor for the facility is approximately three years (expires December 31, 2025) with an interest rate of USD 3M LIBOR + 10%. The loan terms include regular covenants and undertakings with one explicit condition for the facility being that Ovzon conducts a capital raise through equity before the end of May 2023. With USD 45 million already being drawn from the facility, the amended agreement means that an additional USD 20 million may be drawn if needed. 

“We are proud to have strong commitment and long-term support by our shareholders and pleased to continue our excellent collaboration with P Capital Partners, to enable the company to deliver on the promise of finalizing and launching Ovzon’s unique first own satellite – Ovzon 3", says Per Norén, CEO of Ovzon. 

Webcast

Ovzon’s CEO Per Norén and CFO Noora Jayasekara will answer questions at a webcast on February 6, 2023, at 10.00 am CET.

The webcast will be available via the following link:

https://onlinexperiences.com/Launch/QReg/ShowUUID=4FB13E88-D87F-4115-ADB0-02C89FAC4F45

To participate via conference call, please register via the following link and follow the instructions:
https://register.vevent.com/register/BI01396d5bcd6b42338d133b1197f150fb


This information is information that Ovzon AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons set out below, at the time stated by Ovzon AB’s (publ) news distributor Cision upon publication of this press release.

For further information, please contact:
Per Norén, CEO, [email protected], +1 206 931 7232
Noora Jayasekara, CFO, [email protected], +46 70 318 92 97 

About Ovzon
Ovzon offers world-leading mobile satellite communications services, SATCOM-as-a-Service, to customers across the globe. The services combine high data speed with high mobility. Ovzon's SATCOM-as-a-Service meets the growing demand for global connectivity for customers with high performance and security requirements such as Defense, Emergency Services, NGOs, Media and Commercial organizations. Ovzon was founded in 2006 and has offices in Stockholm, Sweden, Herndon, VA and Tampa, FL in the USA. Ovzon is listed on Nasdaq Stockholm Mid Cap. For more information, visit www.ovzon.com.

Provided by: Cision
Ovzon AB
Ovzon AB is engaged in designing, manufacturing and launching its own satellite in order to be able to offer broadband services via satellite to customers in various parts of the world....
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