Elcoteq Issues EUR 29 Million Hybrid Securities to Repay Outstanding Subordinated Debt Having a Nomi
(Thomson Reuters ONE) - Elcoteq SEStock Exchange ReleaseJanuary 27, 2010 at 08:30 am (EET)As part of its previously announced balance sheet restructuring, Elcoteq SE hastoday decided to issue EUR 29 million hybrid securities in a private placement.The proceeds from the hybrid securities issue will be used directly to repay EUR105 million nominal amount of Elcoteq's existing outstanding debenture bonds.The announced restructuring will significantly decrease the Company'sindebtedness.The repayment of EUR 105 million debenture bonds is related to the Company'sprevious announcement on October 21, 2009 to collect irrevocable sellingcommitments from the holders of its subordinated debenture bonds. The Companywill now proceed to exercise these irrevocable commitments. As a result of thistransaction, the company estimates that it will recognize a one-time gain ofapproximately EUR 75 million in the first quarter of 2010.The gain from debenture repayment and the classification of hybrid securities asequity result to an increase in the Company's consolidated shareholders' equityof approximately EUR 105 million. As a consequence, the company's indebtednessand solidity are expected to improve significantly."We are very satisfied that we have been successful in this effort torestructure a significant part of outstanding debts of Elcoteq. This arrangementis a major step in the process to provide further confidence to Elcoteq'scustomers and other stakeholders", says Jouni Hartikainen, President and CEO ofElcoteq.A hybrid security is an unsecured equity instrument which is subordinated to thecompany's debt obligations and treated as equity in IFRS financial statements.Hybrid securities do not confer to their holders the right to vote atshareholder meetings and do not dilute the holdings of the current shareholders.The hybrid securities issued by Elcoteq have a coupon rate of 10.0% per annum.The hybrid securities have no maturity but the company can redeem it after fouryears from issuance at its consideration. The manager of the hybrid securitiesissue is Pohjola Corporate Finance.ELCOTEQ SESatu JaatinenCommunications ManagerFurther information:Mikko Puolakka, CFO, tel. +358 10 413 1287About ElcoteqElcoteq SE is the global Life Cycle Service Partner for high-tech product andservice companies.Engineering, Manufacturing, Fulfillment and After Market Services are the cornerstones of Elcoteq's extensive service offering. Elcoteq has a proven trackrecord in electronics manufacturing services (EMS) and a global factory networkcoupled with modern manufacturing equipment and consistent systems andprocesses.Products include Consumer Electronics devices such as mobile phones and theiraccessories, set-top boxes, flat panel TVs as well as System Solutions productssuch as infrastructure systems, modules and other industrial segment products.The Group's consolidated net sales for 2008 totaled 3.4 billion euros and itemploys approximately 11,000 persons. Elcoteq SE is listed on the Nasdaq OMXHelsinki Ltd. For more information visit the Elcoteq website atwww.elcoteq.com.[HUG#1377481]
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Datum: 27.01.2010 - 01:32 Uhr
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