Pagero Group to Finance Its Proposed Acquisition of Tungsten Corporation Plc

Pagero Group AB has entered into an arrangement whereby Pagero has issued a note facility in the principal amount of SEK 750 million (the "Notes Financing"), replacing the previous bank financing arrangement. The net proceeds from the initial notes will be used for the planned acquisition of Tungsten Corporation Plc.

The notes bear interest at a rate of STIBOR (1.00% floor) per annum and 6.70% for fiscal years 2022 and 2023 and 5.95% for any fiscal year thereafter in aggregate. Pagero and the agents under the notes have further committed to negotiate certain sustainability-related interest adjustments whereby the achievement of agreed sustainability performance targets will allow for a downward adjustment of interest of 0.10%.

The terms of the note facility include customary restrictive clauses such as restrictions on the creation, disposition and distribution of financial obligations and dividends. The financing was provided by Ture Invest AB, a leading provider of direct loans in the Nordic region. The notes will mature in early May 2026.

Bengt Nilsson, CEO of Pagero, said, "We welcome our new financing partner and expect that our partnership will enable us to quickly realize our vision of becoming the world's largest automated and secure business communications network. This creates a strong financial backbone for us to execute our communications growth plans and potential acquisitions including Tungsten Corporation Plc."

Martin Torell, Partner at Ture Invest AB, said, "We are pleased to have supported Pagero, including the financing of their proposed acquisition of Tungsten, which we see as a transaction with a solid strategic foundation. We look forward to being a long-term partner to Pagero and its major shareholder Summa Equity, with whom we have previously completed several ESG-related software acquisition financings."

Pagero Group provides an intelligent business network that connects buyers and sellers, enabling the automated, compliant, and secure exchange of orders, invoices, payment instructions, and other business documents. Through an open network and a wide range of value-added applications, Pagero helps companies streamline order-to-cash and procure-to-pay processes while unlocking the potential of accurate and reliable business data.

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