Boreo raises €13M in capital securities, secures €60M financing deal
What's the deal? Finnish holding company BoreoDealroom has a profile for this one. Try Dealroom → has issued €13 million in capital securities and signed a separate €60 million long-term financing arrangement with OP Corporate BankDealroom has a profile for this one. Try Dealroom →. The capital securities carry a fixed 8.75% annual interest rate until a September 28, 2029 reset date, after which the rate turns floating.
Why now? The proceeds will fund the repurchase of €20 million in hybrid notes Boreo issued in March 2024. The company will also use part of the raise for general corporate purposes.
What's the endgame? Boreo builds long-term earnings growth by acquiring and owning profitable, entrepreneurial companies. Both deals are designed to strengthen its capital structure and speed up that strategy.
The OP Corporate Bank arrangement splits into four parts: a €24 million facility to refinance existing loans, €13 million earmarked for future acquisitions and target-company refinancing, €7 million for the note repurchase, and a €16 million revolving credit facility for working capital. It replaces an earlier facility of up to €55 million dated February 2022.
Why it matters: The financing carries a three-year maturity with two one-year extension options, extending Boreo's debt profile. The dedicated acquisition facility gives it fresh capacity to pursue deals. "We were delighted to see such a strong demand for the Capital Securities which underscores investors' continued trust in Boreo," the company said.
The capital securities are subordinated to Boreo's other obligations and count as equity under current IFRS standards. They have no fixed maturity, but Boreo can redeem them on the reset date or later interest payment dates. They are expected to be issued around September 28, 2026.
The signal: The combined moves show Boreo swapping older, more expensive hybrid debt for a fresh mix of equity-classified securities and bank facilities. For a serial acquirer, the ring-fenced €13 million acquisition line is the clearest tell of continued dealmaking ambition.
Image credit: Generated with Gemini
