Fri 12/17/2021 04:47 AM
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Business Update

HIG Capital, the sponsor of Cabonline, is considering a sale of the Nordic taxi group in the first quarter of 2022, sources told Reorg.

The company is in the middle of a strategic review to assess its future, financing and development. In particular, the review is looking to address the company’s 1.8 billion Swedish kronor ($198.9 million) bond maturing in December 2022, which is expected to result in an amend and extend solution, as reported in August.

However, some of the company’s creditors have since made it clear that they will not extend the maturity of the debt while HIG Capital remains owner of the business, according to sources.

In September, the company stated the strategic review was progressing “according to plan.” The company has been working with Macquarie on the review, as reported.

Cabonline did not respond to requests for comment. HIG could not be reached for comment.

Cabonline has been enjoying a recovery in its business since Covid-19 restrictions were eased. In its third quarter, revenue increased 20% year over year to SEK 1.162 billion. Adjusted EBITA was SEK 68 million compared with SEK 7 million a year earlier. The adjusted EBITA margin recovered to 5.9%, from 0.7% a year earlier.

The company's capital structure as of June 30 is below:

Cabonline Group Holding AB


EBITDA Multiple

(SEK in Millions)





SEK 125M Super Senior Revolving Credit Facility due 2022 1



STIBOR + 4.250%

Total Super Senior Revolving Credit Facility



SEK 140M Senior Secured Shareholder Facility 2


SEK 1.8B Senior Secured Notes due 2022 3



STIBOR + 8.500%

Total Senior Secured Debt



Tax and Fee Credits 4


Other Debt 5


Total Other Debt



Total Debt



Less: Cash and Equivalents


Plus: Restricted Cash


Net Debt



Operating Metrics

LTM Revenue





RCF Commitments


Less: Drawn


Other Liquidity


Plus: Cash and Equivalents


Less: Restricted Cash


Total Liquidity


Credit Metrics

Gross Leverage


Net Leverage


Reported EBITDA is the adjusted EBITDA as reported by the company. Restricted cash refers to SEK 5.6M of cash pledged for rent commitments. Other liquidity refers to SEK 140M of undrawn (assumed) shareholder facility.
1. For the loan commencing after Jul. 23, 2020 but before Sept. 30, 2021, the margin in relation to such interest period will be 4.5% instead of 4.25%.
2. There is no disclosure on the amount drawn, thus it was assumed to be undrawn. Ranks pari passu with the notes and shall be permitted to share in the transaction security granted for the notes. The margin for such financing shall not exceed 5%. Such commitment will have an availability period as long as the Liquidity Maintenance Covenant applies, and the incurred loans will be in the minimum amount of SEK 25M and have a maturity date occurring simultaneously with the maturity for the notes.
3. The bond has a total scope of SEK 2.2B, of which SEK 1.8B has been utilized. In July 2020 the group agreed with its noteholders to waive the leverage maintenance covenant for the test dates between June 30, 2020 to Sept. 30, 2020 and to amend the ratios for the test dates occurring thereafter to 7.00:1 for Dec. 31, 2021, 6.75:1 for March 31, 2022, 6.50:1 for June 30, 2022, 6.25:1 for Sept. 30, 2022 and 6.00:1 for Dec. 31, 2022. The margin for interest expense was also increased to 8.5% from 7.5%. Includes a monthly maintenance liquidity test based on the average liquidity position of the group (including cash and undrawn amounts under the super senior RCF) during each calendar month which shall not be less than SEK 125M until and including September 2021.
4. About SEK 39M is due during 2021 and remaining part during 2022.
5. Other debt is calculated as the residual of total interest-bearing liabilities as reported under balance sheet.

-- Thomas Baker, Magnus Scherman
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