St Helier, Jersey, 2013-10-24 08:33 CEST (GLOBE NEWSWIRE) -- NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO ANY U.S. PERSON OR IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN OR AT ANY ADDRESS IN THE UNITED STATES SUBJECT TO CERTAIN EXCEPTIONS, OR TO ANY PERSON LOCATED IN THE REPUBLIC OF ITALY, FRANCE OR BELGIUM OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS PRESS RELEASE
Black Earth Farming Ltd. (“Black Earth Farming” or “the Company”) has resolved to issue a new SEK 750 million senior unsecured bond (the “Bonds”). The Bonds have a fixed annual coupon of 9.40 per cent and mature after 4 years. The Bonds have been subscribed for through an exchange offer by the Company and, in addition thereto, a private placement to primarily institutional investors. Black Earth Farming will apply for a listing of the Bonds on NASDAQ OMX Stockholm in due time to have the Bonds listed no later than 30 March 2014.
The issue proceeds will be used to redeem the Company’s outstanding bond loan.
On 14 October 2013, Black Earth Farming announced an exchange offer to the holders of the Company’s SEK 750,000,000 10% Bonds 2010/2014, Loan no.2, ISIN SE0003366624 (the “Existing Bonds”) to exchange their Existing Bonds for the Bonds. The offer to exchange Existing Bonds has been accepted in a total nominal amount of SEK 371 million of which the Company have tendered SEK 100 million that is previously held on its own account. Black Earth Farming will act to terminate all Existing Bonds tendered in the exchange offer and intends to call for an early redemption of the Existing Bonds that remain outstanding after the exchange offer and such termination.
ABG Sundal Collier AB has acted as financial adviser to the Company in conjunction with the issue of Bonds.
Important Information
This press release does not constitute an offer to buy or a solicitation of an offer to sell bonds in any jurisdiction.
The bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The exchange offer and the new bonds have not been approved or disapproved by the U.S. Securities and Exchange Commission, any State securities commission in the United States or any other U.S. regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the exchange offer or the accuracy or adequacy of the exchange offer document. Any representation to the contrary is a criminal offence in the United States.
For further information please contact:
Erik Lystedt, Director of Investor Relations, Black Earth Farming Ltd., erik.lystedt@blackearthfarming.com
Notes to Editor:
Black Earth Farming Ltd. is a leading farming company, publicly listed on Nasdaq OMX Stockholm and operating in Russia. It acquires, develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. The Company has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh regions, controlling some 310,000 hectares of what perhaps is the world's most fertile soil.
In 2013 Black Earth Farming plans to harvest approximately 224,000 hectares, effectively making it one of the world's largest public farming companies by cropped area. The Company's main products are wheat, corn, barley, sunflower, soya and rapeseed.
Corporate website: www.blackearthfarming.com
