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Pricer - '24e-'25e EPS could rise by 6-4%

03 december 2024

<a id="bm-comp-fd629e33-a79d-41ba-a536-4035466b2ecf" name="bm-comp-fd629e33-a79d-41ba-a536-4035466b2ecf" class="BMCustomAnchor"></a><table><tr><td bm-component-id="fd629e33-a79d-41ba-a536-4035466b2ecf" style="vertical-align: top; width:100.000000%;"><ul><li>Contemplates issuance of SEK 250m bond (500m framework)</li><li>Refinance of the SEK 250m bond issued in Q4'22 (3m STIBOR + 6.875%)</li><li>Terms still unknown, but could add c. 6-4% to our '24e-'25e EPS</li></ul></td></tr></table><a id="bm-comp-4af3a43c-ce52-4b74-99d3-b08ff24a2089" name="bm-comp-4af3a43c-ce52-4b74-99d3-b08ff24a2089" class="BMCustomAnchor"></a><table><tr><td bm-component-id="4af3a43c-ce52-4b74-99d3-b08ff24a2089" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">EPS-accretive announcement</h3><p>Pricer announced today that it is exploring the possibility of issuing new senior unsecured bonds. The initial expected value is SEK 250m within a framework of SEK 500m (3 years). The aim is to refinance the company's existing SEK 250m bonds with Ture Invest, issued in Q4'22 (four-year tenor) with an interest rate of STIBOR 3m + 6.875% (i.e. ~SEK 24m/year based on the current STIBOR 3m). The terms of the planned bond issue are not known, but assuming that the spread halves (i.e. 3m STIBOR ~3.5%), this would reduce annual interest payments by ~SEK 8m, which would be c. 6-4% accretive to our '24e-'25e EPS.</p><h3 class="bm-h3">Strong operational momentum recently</h3><p>Pricer has recently shown strong operational momentum, with improving margins on the back of higher GMs coupled with recent cost savings (we expect 7% adj. EBIT margin in '24e vs. 1% in '23). The improved profits have led to a solid balance sheet, as we see NIBD of SEK 15m at the end of '24e (vs. SEK 159m in Q3, due to a significant NWC build-up in that quarter). As such, we do not necessarily believe that Pricer will need to tap the full SEK 500m framework, although a refinancing of the existing bond is highly likely to be accretive. The announcement could potentially involve some NRIs, but these are currently unknown.</p></td></tr></table>

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