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2009-03-23 15:49:01 CET 2009-03-23 15:50:08 CET REGULATED INFORMATION Finnlines - Corporate ActionFinnlines issues a hybrid bondFinnlines Plc Stock Exchange Release 23 March, 2009 The Board of Directors of Finnlines Plc has today resolved to issue a hybrid bond in order to strengthen the Group's capital structure. The principal amount of the bond is EUR 21 million and the coupon of the bond is 12 per cent per annum. The bond has no maturity but the company may redeem the securities after three years or at any time in certain events including issue of new shares. The arranger and administrator of the issue is Sampo Bank Plc. The bond is targeted to main shareholders. Hybrid bond is a bond that is subordinated to the company's other debt obligations and will be treated as equity in the company's IFRS consolidated financial statement. Except for certain events subject to the conditions set out in the terms of the bond, the company does not have an obligation to pay interest on the hybrid bond unless it distributes funds to the shareholders. Payment of minority dividend pursuant to the Finnish Companies' Act does not trigger a payment obligation, however. The Board of Directors of Finnlines Plc intends to propose to the shareholders' meeting of the company that a rights issue be arranged in May 2009. The company's largest shareholder, Grimaldi Group has committed to subscribe shares in such a rights issue provided that shareholders' meeting decides on the rights issue in accordance with the proposal by the Board of Directors. According to the intention of the Board of Directors the principal of the hybrid bond and any accrued interest shall be redeemed in full after the rights issue in accordance with the terms and conditions of the hybrid bond. Hybrid bond holding does not confer to vote at shareholder meetings and does not dilute the holdings of the current shareholders. FINNLINES PLC Board of Directors DISTRIBUTION: NASDAQ OMX Helsinki Main media |
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