Theon International Plc is preparing to enter into a new loan agreement of up to €325 million, bolstering its financing capacity as the defense-technology group steps up investment and acquisition activity.
The Cyprus-incorporated company, which is listed on Euronext and led by Greek entrepreneur Christian Hadjiminas, is expected to sign the financing agreement on or around Sept. 7, 2026. The transaction brings together a broad group of Greek and international lenders, underscoring the scale of Theon’s funding requirements as it pursues its expansion strategy.
The initial lender group is expected to include Alpha Bank’s Luxembourg branch, National Bank of Greece (Cyprus), CrediaBank, Eurobank Private Bank Luxembourg, Piraeus Bank’s Frankfurt branch, BNP Paribas and Deutsche Bank.
As part of the transaction, Greek subsidiary THEON SENSORS S.A. is expected to provide a guarantee in favor of Theon International and Theon Sensors AG. THEON SENSORS, Theon Sensors AG and Theon International itself are expected to act as the initial guarantors under the financing agreement.
The new facility comes as Theon’s balance sheet is already carrying substantially more debt following a period of accelerated investment and dealmaking.
Net debt stood at €234.3 million as of June 30, up from €228.2 million at the end of March. That represents an increase of €6.1 million, or roughly 2.7%, during the second quarter.
The rise in borrowings hasn’t translated into a corresponding deterioration in the company’s headline leverage ratio, at least for now. Net debt to last-12-month adjusted Ebitda eased to 1.7 times at the end of June from 1.8 times three months earlier, reflecting growth in the group’s operating earnings.
That picture is set to change once recent acquisitions are fully incorporated into the numbers.
Management estimates that leverage will rise to around 3.0 times adjusted Ebitda on a pro forma basis. The company expects the ratio subsequently to decline, moving toward 2.5 times during 2027.
That trajectory will be closely watched by investors. Theon has been expanding at a time when European defense spending is rising and governments are placing greater emphasis on military readiness and technological capabilities. The additional financing gives the company more room to fund that growth, but it also makes cash generation and the pace of deleveraging increasingly important measures of the success of its expansion strategy.
Sept. 7 could provide a clearer view of that trade-off.
Alongside the expected signing of the loan agreement, Theon is scheduled to publish its full financial report for the first half of 2026 that day. The report should provide investors with a more detailed picture of the group’s financial position, including the composition of its borrowings and cash balances and the effect of acquisitions on leverage.
