Danish satellite manufacturer GomSpace has announced the refinancing of a SEK 200 million (€18 million) credit facility originally provided by the European Investment Bank (EIB). Under the new agreement, the company’s major shareholder, British billionaire investor Peter Hargreaves, will effectively take over as the lender.
GomSpace announced on 3 July that it had successfully refinanced the EIB loan. The company stated that the refinancing ensures continued access to SEK 145 million (€13 million) in available credit, following a €5 million drawdown (an initial portion of the facility already utilised by the company) in February 2023. Use of the remaining credit will be at the discretion of the company’s Board of Directors.
“The continued access to SEK 145 million in credit, alongside the capital increase of SEK 198 million and the postponed repayment of the original tranche, gives us the financial flexibility to focus fully on executing our growth strategy and delivering long-term value to our investors and employees.”
According to the company, the refinancing offers several benefits, including greater flexibility in its use, as the original EIB facility was restricted to certain investments that required co-funding. It also renews the five-year maturity of the original €5 million drawdown, giving the company more time to repay the loan, and extends the availability of the remaining two tranches for another 24 months. Finally, the new agreement removes the lender put option, a provision that allows a lender to demand early repayment under certain conditions.
In addition to taking on the GomSpace EIB loan, Peter Hargreaves increased his share in the company to 41.27% earlier this year, enabling GomSpace to secure a SEK 196 million capital increase. In a press release issued on 18 March, the company explained that the additional capital would be used to capitalise on emerging opportunities driven by a surge in “European and Nordic defence spending.”
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