HLRE Holding Oyj has strengthened its financial position by increasing the available commitment under its existing super senior revolving facility from EURm 1 to EURm 2 on 23 December 2025.
HLRE Holding Oyj has been informed that:
- its existing shareholder loans have been sold by its current shareholders to a fund managed by the majority bondholder Capital Four, and that these expectedly will be invested into the unrestricted equity of HLRE Holding Oyj to strengthen the balance sheet of the HLRE Holding Oyj and its subsidiaries; and
- a conditional agreement has been entered into between the existing shareholders of HLRE Holding Oyj and the fund managed by Capital Four comprising all shares of HLRE Holding Oyj.
HLRE Holding Oyj has further been informed that, the significant minority shareholder and founder Kimmo Riihimäki and the fund managed by Capital Four have agreed in principle on a recapitalization structure of HLRE Holding Oyj which are pending structuring analysis, implementation and all relevant approvals, including a merger filing to the Finnish Competition and Consumer Authority, and a written procedure under HLRE Holding Oyj's issued bond.
HLRE Holding Oyj has been informed that the contemplated recapitalization transaction will expectedly, amongst others, include:
- a significant interest reduction on its existing super senior revolving facility provided by the fund managed by Capital Four;
- that the bondholders under the bond issued by HLRE Holding Oyj would be offered to convert into an equity like 1st ranking instrument with a principal amount of EURm 23 with a preference yield compounding at 6 % p.a. ranking ahead of ordinary shares;
- a pro rata option for bondholders to participate in a new money instrument of up to EURm 1 by way of an equity like 2nd ranking instrument with a yield compounding at 4 % + IBOR p.a. ranking ahead of ordinary shares and after the aforementioned equity like 1st ranking instrument. Participating bondholders will also be expected to receive 10% of ordinary shares if the EURm 1 is fully subscribed (reduced 1:1 if not fully subscribed);
- an investment into the unrestricted equity of HLRE Holding Oyj of the shareholder loans acquired by the fund managed by Capital Four to strengthen the balance sheet of the HLRE Holding Oyj and its subsidiaries;
- that founder Kimmo Riihimäki will contribute a sizable new equity amount and the fund managed by Capital Four will be acquiring the ordinary shares which are not distributed to the bondholders participating in the equity like 2nd ranking instrument;
- a management incentive program in the ordinary shares for the benefit of key employees; and
- governance over HLRE Holding Oyj is expected to be exercised by only Kimmo Riihimäki and the fund managed by Capital Four.
About Vesivek
Vesivek is Finland's leading service company specializing in water control and humidity control solutions outside properties. Our services include roof and drainage renovations, as well as the manufacture and installation of roof safety products and rainwater systems. We manufacture roof profiles in Pirkkala, as well as rainwater systems and roof safety products in Orimattila at our own factories. With the help of a locally operating installation network, we serve owners of detached houses, housing companies, construction companies, real estate investment companies and other operators all over Finland. The companies belonging to the Vesivek Group are Vesivek Oy, Vesivek Tuotteet Oy, Vesivek Salaojat Oy, Tuusulan Peltikeskus Oy and Vesivek Sverige Ab. The Group employs approximately 600 people. The Group's net sales were approximately EUR 103 million (financial period 02/2024–1/2025).
About Capital Four
Capital Four is an industry-leading credit asset manager with roots in Scandinavian culture. The company is headquartered in Copenhagen and has offices in New York, London, Stockholm, Frankfurt and Amsterdam. A team of more than 170 professionals manages more than €23 billion in assets on behalf of a global customer base.
Further information
Vesivek: Kimmo Riihimäki, Group CEO, +358 40 073 0671
Capital Four, media inquiries: Taru Taipale, Miltton, +358 50 470 6235,