Neomarkka - Company Announcement

NEO INDUSTRIAL ISSUES CONVERTIBLE BONDS DUE 2016

Helsinki,Finland, 2011-11-23 13:47 CET (GLOBE NEWSWIRE) -- 

Neo Industrial issues convertible bonds due 2016

Neo Industrial Plc ("Neo Industrial" or the "Company") has decided to issue
senior unsecured convertible bonds due 2016 (the "Bonds"), which entitle to a
cash compensation based on the value of the underlying shares. The Bonds are
proposed to be issued at a principal amount of EUR 6 million and are offered to
institutional investors. The nominal value of each bond is EUR 50,000. The
Bonds are intended to diversify the Company's funding base, extend the debt
maturity profile and improve the liquidity position. 

The Bonds are expected to carry a coupon of 7.50% per annum payable annually in
arrear starting on 30 November 2012. The Bonds do not entitle to shares but to
cash compensation based the Company's class B share price unless previously
redeemed or bought back. The ground for the cash compensation (conversion
price) is expected to be set at a premium of 25% to the five-day (17 November
through 23 November) volume-weighted average price of Neo Industrial's class B
shares on the NASDAQ OMX Helsinki. The Bonds will be issued at 100% of their
principal amount and the Bondholders are entitled to cash compensation equal to
the market value of the shares notionally underlying the Bonds as detailed in
the terms and conditions. The right to convert the Bonds, i.e. the right to
cash compensation, commences on 2 December 2013. The subscription date of the
Bonds is 23 November and the settlement date is 30 November 2011. 

The Company will have the right to redeem the Bonds at their principal amount
together with interest accrued to such date after 1 December 2014 provided that
the closing price of Neo Industrial's class B share has for a specified period
been at least 150 per cent of the conversion price as well as at any time if
less than 15 per cent of the principal amount of the Bonds originally issued
remains outstanding. The investors have the right to require the Company to
redeem the Bonds on 30 January 2015 at their principal amount together with
accrued interest. 

No application will be made to admit the Bonds to public trading.

Pohjola Corporate Finance Ltd is acting as the Lead Manager for the Issue.



Neo Industrial Plc

Markku E. Rentto
Managing Director


Further information:

Markku E. Rentto, Managing Director, Neo Industrial Plc, tel: +358 207 209 181
Timo Mäkeläinen, Managing Director, Pohjola Corporate Finance Ltd, tel. +358 50
307 8977 

www.neoindustrial.fi

Neo Industrial's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought through both dividend flow and an increase in value. Neo Industrial's
class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange. 

Neo Industrial's business segments are Cable (Reka Cables, Expokabel, Nestor
Cables), Viscose Fibers (Avilon) and Single Family Housing (Finndomo).