Alma Media has a EUR 190 million long-term financing arrangement and a commercial paper programme and at its disposal. Information about them is summarised below.
MEUR 190 long-term financing arrangement
In December 2023, Alma Media signed a new MEUR 160 Term Loan financing facility. The new financing arrangement replaced the MEUR 200 financing facility signed in 2021, for which the remaining loan amount on the repayment
date was MEUR 140. The new financing arrangement has a maturity of 36 months, including extension options of 12 or 24 months. The financing package also includes a revolving credit facility of MEUR 30 that will be used for the Group’s
general financing needs. The credit limit agreement has the same maturity as the Term Loan. The limit was not in use on 31 December 2023. The financing arrangement includes the usual covenants concerning the equity ratio
and the ratio of net debt to EBITDA. The Group met the covenants on 31 December 2023.
At the end of December 2023, Alma Media’s interest-bearing debt amounted to MEUR 198.1 (172.7). Interest-bearing net debt totalled MEUR 145.7 (142.6).
MEUR 100 Finnish Commercial Paper Programme
The commercial paper programme will enable the company to ensure, in line with its treasury policy, that it has sufficient financial instruments at its disposal for its various capital needs. The programme permits the company to issue notes totalling 0 – 100 MEUR. Of the commercial paper programme, MEUR 0 was in use on 31 December 2023.
- Issuer: Alma Media Corporation
- Dealers: Nordea Bank Finland Plc, Danske Bank Plc and Pohjola Bank Plc
- Currency: euro
- Denomination: The minimum denomination is EUR 100,000.
- Maturity of the Notes: Not less than one day and not more than 364 days.
- Status: The Notes are bearer bonds issued by Alma Media Corporation. There is no collateral for the Notes.
- Rating: Neither the Issuer nor the Notes are rated.
- Listing: The notes will not be listed.
- Applicable law: Finnish legislation.
The interest rate derivative agreement
Alma Media signed an interest rate derivative agreement in December 2021. The agreement is a four-year fixed interest rate agreement that commences when two years have elapsed from the signing date. The nominal value of the
derivative is MEUR 50. The negative fair value change of MEUR 1.1 generated by the derivative in the fourth quarter of 2023 is recognised in finance expenses. The decrease in long-term market interest rates contributed to the change
in the fair value during the period under review. In 2022, a positive fair value change of MEUR 5.2 generated by the interest rate derivative was recognised in finance income.
The interest rate on the Term Loan is linked to a floating market rate. If the reference rate of the loan were to increase by one percentage point in 2024, the annual effect on financial expenses would be MEUR 1.6. The interest rate
derivative taken out for the Term Loan would reduce the cash-based cost effect of a one percentage point increase in the reference rate by MEUR 0.5.