Careium repays hybrid loan to simplify capital structure
Careium repays hybrid loan to simplify capital structure
In connection with the listing of Careium AB (publ) (“Careium” or the “company”) on Nasdaq First North Growth Market in 2021, the company raised a hybrid loan of SEK 50 million from its former owner, Doro AB (“Doro”). Including interest, the hybrid loan amounts to a total of SEK 64 million as of today. Careium and Doro have today agreed that Careium shall repay SEK 35 million to Doro no later than July 24 2026 to settle the hybrid loan, including interest, in full. This provides Careium with a more efficient capital structure and enables the company to pay dividends without the restrictions associated with the hybrid loan.
The repayment of the hybrid loan is intended to be financed primarily with existing cash and, if necessary, through additional drawdowns under the company’s existing credit facility. The existing loans under the credit facility currently carry an interest rate of 1.4 percent + STIBOR. The remaining SEK 29 million of the hybrid loan will be written off and recognized as retained earnings in the third quarter of 2026. Repayment of the hybrid loan has no impact on the company’s result.
The hybrid loan has carried an annual interest rate of 5.5 percent. In accordance with the terms of the hybrid loan, Careium has deferred the interest payment in full. In the event of a decision on dividend distribution in Careium, any deferred interest would be payable within five business days. The hybrid loan had no contractual maturity date; instead, Careium had the right to decide when to settle the loan.
In accordance with the terms of the hybrid loan, it has been recognized as equity in Careium’s accounts.