Componenta Corporation Stock Exchange Release 11.5.2016 at 8.00
The Board of Directors of Componenta Corporation (the “Company”) has accepted subscriptions for a convertible capital loan (the “Loan”) of EUR 40 million in total which corresponds to the maximum amount of the Loan. The Loan was offered to selected investors. EUR 25.4 million of the subscription price will be paid in money and EUR 14.6 million by setting off the subscription price against a loan receivable from the Company. The issuance date of the Loan is 16 May 2016.
“The consummated financial arrangement will reduce our debt level and it improves the liquidity. With this we continue to do actions to improve the profitability. I thank all the investors for their trust”, says CEO Harri Suutari.
The Loan is a bullet loan and its maturity is four (4) years. The Company may not prepay the Loan before its maturity date. The issuing price of the Loan is 100 per cent and the interest of the Loan is 2 per cent per annum. The Loan can be converted into shares in the Company during the term of the Loan. The subscription price of a share is EUR 0.50. The subscription price is considered to be fair to all shareholders taking into account on one hand the Company’s share price at the time of the Loan issuance and, on the other hand, the need to secure the success of the Loan issuance. As a result of the subscriptions based on the shares of the Loan, the Company will issue the maximum of 80 million new shares.
Negotiations relating to additional financing to the Company’s Turkish subsidiary are proceeding as planned.
The issuing of the Loan enables to discharge of secured bank loans and a secured bond. The financial arrangement is expected to be finalized on 16 May 2016.
Helsinki, 11 May 2016
COMPONENTA CORPORATION
Harri Suutari
President and CEO
For further information, please contact:
Harri Suutari
President and CEO
tel. +358 400 384 937
Markku Honkasalo
CFO
tel. +358 10 403 2710
Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 495 million in 2015 and its share is listed on Nasdaq Helsinki. The Group employs approx. 4,250 people. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers, who are manufacturers of vehicles, machines and equipment.