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Actic: Refinancing should bolster equity risk premium - SEB

Actic Group, a leading fitness club operator, has announced a refinancing after breaching covenants in Q1. The new financing, agreed at "largely unchanged terms", will be in place until March 2023, allowing for focus on its operational recovery post Covid-19 (operating at reduced capacity). We argue this should bolster the equity risk premium (market cap of SEK 300m, Q1 net debt of SEK 356m) and we maintain our midpoint DCF value of SEK 25.

Actic Group, a leading fitness club operator, has announced a refinancing after breaching covenants in Q1. The new financing, agreed at "largely unchanged terms", will be in place until March 2023, allowing for focus on its operational recovery post Covid-19 (operating at reduced capacity). We argue this should bolster the equity risk premium (market cap of SEK 300m, Q1 net debt of SEK 356m) and we maintain our midpoint DCF value of SEK 25.
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