SpareBank 1 SMN strengthens equity
(Thomson Reuters ONE) - The Board of SpareBank 1 SMN proposes to refinance the hybrid capital bond fromthe Norwegian State Finance Fund by implementing:· Fully underwritten rights offering with preferential rights for existingowners of equity certificates with gross proceeds of approx NOK 800 mill· Private placement towards the employees of SpareBank 1 SMN· Issue of hybrid capital bonds in the market of up to NOK 450 mill during2010The gross proceeds from the rights offering and the employee offering will beused to refinance part of the hybrid capital bond of NOK 1,250 mill from theNorwegian State Finance Fund that SpareBank 1 SMN issued in the autumn of 2009.The remaining amount of the hybrid capital bond will be redeemed through anissue of hybrid capital bonds in the market during 2010. The redemption requiresapproval from the Financial Supervisory Authority of Norway.SpareBank 1 SMNs core capital ratio will not be affected since the new capitalwill be used to redeem the hybrid capital loan from the Norwegian State FinanceFund.The rights offering is fully underwritten of a consortium consisting of DnB NORMarkets, SpareBank 1 SR-Bank, SpareBank 1 Nord-Norge, Sparebanken Hedmark andSamarbeidende Sparebanker AS.To implement the rights offering, SpareBank 1 SMN has retained DnB NOR Marketsas Global Coordinator and Bookrunner. SpareBank 1 SMN Markets is retained asJoint Lead Manager and Argo Securities as Co-Lead Manager.Normalised market- The Norwegian State Finance Fund has played a vital role in the challengingperiod the financial services industry has been through. The purpose of thehybrid capital loan was to strengthen the core capital at a time where themarket and the rating agencies expected it. The Norwegian State Finance Fundenabled this whereas the market conditions were challenging. We now consider themarket to be normalised and propose to refinance the hybrid capital loan fromthe Norwegian State Finance Fund, says CEO Finn Haugan of SpareBank 1 SMN.- By partly replacing the hybrid capital bond from the Norwegian State FinanceFund with equity certificate capital, the quality of the banks core capital isstrengthened in line with the market's expectations, says Haugan.Rights offeringThe rights offering with gross proceeds of approx NOK 800 mill is implemented byissuing new equity certificates with preferential rights for existing equitycertificate owners as of 4 March 2010. According to the preliminary timetablethe subscription period will commence 11 March and end on 25 March 2010. Thesubscription price will be resolved by SpareBank 1 SMN's Supervisory Board on 3March 2010.Employee offeringThe subscription period and the subscription price in the employee offering willbe the same as in the rights offering. According to the proposal from the Board,each employee of SpareBank 1 SMN and certain subsidiaries are allowed tosubscribe for up to 2,000 equity certificates with a 1 year lock-up period.Certain employees in leading positions are not allowed to participate in theemployee offering due to restrictions set out by the loan agreement with theNorwegian State Finance Fund. The gross proceeds from the employee offering willbe up to NOK 80 mill.The Board of SpareBank 1 SMN considers it of importance that the employees ofthe bank have strong focus on value creation and are aligned with ownershipinterests. The bank has a long tradition of ownership among its employees.Hybrid capital bondThe Board of SpareBank 1 SMN has given the administration a power of attorney toissue up to NOK 450 mill of new hybrid capital bonds. The bank is planning anissue of hybrid capital bonds in the market during 2010.Preliminary timetable3 March 2010: The Supervisory Board resolves the issues5 March 2010: Existing equity certificates are traded exclusiveof supscription rights11 - 25 March 2010: Subscription period and trading of subscriptionrights on Oslo B?31 March 2010: Allocation of new equity certificates12 April 2010: New equity certificates are tradable on OsloB?rsInformationA press and analyst presentation will be held Thursday 11 February 2010 at08:30 in SpareBank 1 SMN's head offices at Vestre Rosten 77 in Trondheim and at17:00 the same day at Shippingklubben, Haakon VIIs gate 1, Oslo. Thepresentation at 17:00 will be broadcasted over webcast. A link to the webcastwill be published under Investor Relations at www.smn.noMore information about the rights offering will be published at a dedicated pagefor the rights offering at www.smn.noTrondheim, 10 February 2010Contact persons at SpareBank 1 SMN:CEO Finn Haugan on +47 900 41 002Executive Vice President, Finance, Kjell Fordal on +47 905 41 672Executive Vice President, Corporate Communications, Hans Tronstad on+47 941 78 322About SpareBank 1 SMNSpareBank 1 SMN is the region's leading financial services group. It leads theretail and corporate market, and is positioned in 56 municipalities across theregion. We aim to be the recommended bank for customers in Mid-Norway, and as alocal, independent savings bank we feel a special responsibility for stimulatinggrowth and prosperity in the region. We base our business on closeness to ourcustomers, good accessibility, a full product range and comprehensive financialadvisory services.Our head office is in Trondheim. The Group employs about 1,100 staff andincludes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. SpareBank 1 SMN is oneof six owners of SpareBank 1 Gruppen. For further information, visit our websiteat www.smn.no* * * * *DisclaimerThese written materials are not for distribution in the United States,Australia, Canada, Hong Kong or Japan. The information contained herein doesnot constitute an offer of securities for sale in the United States, Australia,Canada, Hong Kong or Japan.The securities may not be offered or sold in the United States unless they areregistered under applicable law or exempt from registration. The Savings Bankdoes not intend to register any portion of the offer in the United States or toconduct a public offer of securities in the United States. No money, securitiesor other consideration is being solicited and, if sent in response to theinformation contained herein, will not be accepted.This information is subject of the disclosure requirements acc. to §5-12 vphl(Norwegian Securities Trading Act)[HUG#1383238]
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Datum: 10.02.2010 - 17:08 Uhr
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