VivoPower PLC (NASDAQ:VIVO, FRA:51J) has fully retired the $28.8 million in shareholder debt it owed to AWN Holdings, eliminating the last of its principal obligation to the entity and sharpening its credit profile ahead of a planned AI data center buildout in Norway, according to a new analyst note from Noble Capital Markets.
Of the total, $16.5 million was converted under the company's second PIPE offering, while the remaining $12.3 million was repaid in cash.
Analysts at Noble said the move removes the associated interest expense and materially improves VivoPower's credit quality as it advances the Mo i Rana AI data center conversion.
The debt retirement follows a $50 million PIPE priced at $7.50 per share on July 29, led by Blue Sky Capital alongside Nordic, EU and GCC institutional and family-office investors. Proceeds from the raise are earmarked for the Mo i Rana project and further debt reduction.
VivoPower's board has also approved separating the company's 2.2GW non-Nordic portfolio, spanning the UAE, Oman, Saudi Arabia, Malaysia and the Philippines, into an independently listed and capitalized platform on the London Stock Exchange and Abu Dhabi Securities Exchange. Noble said the restructuring moves the portfolio's capital expenditure off VivoPower's balance sheet while the company retains de facto control, leaving a Nordic-focused AI infrastructure business.
Beyond the operational Mo i Rana site, VivoPower retains a hydro-powered Nordic growth pipeline, including a 28% interest in FCDC's 3.8GW Finnish portfolio, equivalent to roughly 1.21GW net. Noble said the FCDC structure gives VivoPower exposure to gigawatt-scale growth while limiting direct capital outlay, extending its runway beyond the first operational asset.
Noble maintained its Outperform rating on VivoPower, with a $10 price target based on a 5.5x EV/2028 EBITDA multiple and a fully diluted share count of 62.6 million shares.
The firm estimates VivoPower trades at 0.6x its EV/CY2028 EBITDA estimate of $121 million, compared with an industry peer average of 10.4x.
“With the AWN shareholder debt fully retired and the associated interest expense eliminated, the company's financial flexibility improves, reinforcing the path to our estimates,” Noble wrote.
“We view the risk/reward as attractive at current levels and maintain our Outperform rating.”