5.6. FINANCIAL LIABILITIES
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The implementation of NoHo Partners\u2019 strategy and the financing of its business growth is
partly dependent on outside financing. The company continuously strives to assess and
monitor the amount of financing required for business in order to have sufficient liquidity to
finance operations and repay maturing loans. Changes in the macroeconomic environment
or the general financing market situation may negatively affect the company\u2019s liquidity as
well as the availability, price and other terms and conditions of financing. Changes in the
availability of equity and credit capital financing and in the terms and conditions of available
financing may affect the company\u2019s ability to invest in business development and growth in
The covenant terms of the financing agreement of the Group\u2019s parent company relate to the
specific financial key figures, which are interest-bearing net liabilities (excluding IFRS 16
liabilities) / adjusted operational EBITDA (12 months) and adjusted equity ratio (excluding
IFRS 16 liabilities). In addition, the agreement also contains
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customary terms related to
guarantees, investments, and group reorganisations.
In the third quarter of 2024, the Better Burger Society subgroup restructured its own
financing package, which was separate from the rest of NoHo Partners' financing. In this
arrangement, part of the financing package originally negotiated in the third quarter of 2023
was refinanced locally in collaboration with a Swiss financial institution. The renewed
financing package supports the growth objectives of the BBS group\u2019s strategy in the current
market, namely scaling the Friends&Brgrs chain in Finland and expanding the Holy Cow!
chain in Switzerland. The covenant terms of the financing agreement of the BBS subgroup
relate to the financial key figures, which are adjusted operational EBITDA (12 months),
interest-bearing net liabilities (excluding IFRS 16 liabilities) / adjusted operational EBITDA
(12 months) and adjusted operational EBITDA (12 months) / net finance charges.
Both the parent company and the BBS subgroup conduct covenant reviews on a quarterly
basis, and both met the established covenants.
NoHo Partners' new financing agreement as of 11 October 2024
During the review period, NoHo Partners has entered into a new long-term financing
agreement aimed at supporting the company's growth objectives for the 2025-2027 strategy
period. With the new agreement that came into effect on 11 October 2024, the company has
raised a financing package of MEUR 102, the repayment program of which allows for the
balanced achievement of growth objectives, the payment of increasing dividends, and the
reduction of indebtedness towards the company's strategic target, where the net debt to
operational EBITDA ratio is approximately 2. The annual loan repayment under the
agreement is MEUR 6. With the new financing agreement and declining reference interest
rates, the company's financing costs are expected to decrease significantly in the coming