Componenta - Company Announcement

Componenta has made a preliminary agreement for a financial solution which significantly strengthens its balance sheet

Componenta Corporation   Stock Exchange Release 1.4.2016 at 8.30

Componenta Corporation has on 24 March 2016 announced that it is preparing a
financial solution to secure the continuity of its operations and to strengthen
its financial position. 

Componenta Corporation has made a preliminary agreement to repay its secured
loans. The targeted solution will, when realized, strengthen the company's
balance sheet by reducing the secured loans by EUR 72 million and increase the
company's equity approximately by EUR 50 million. 

The arrangement regarding the secured loans and actions to secure the company’s
working capital are aimed to be financed by issuing a convertible capital loan
and divesting the non-core business operations and properties. 

As previously announced the company is aiming to issue a capital loan that may
be converted into shares, amounting tentatively up to a total of EUR 30 - 40
million. The convertible capital loan would be subscribed for by a limited
number of selected professional investors. The loan subscriptions could be paid
by using cash or receivables from the company. The maturity of the loan would
be four years and the loan would be repayable in full at a due date. The
exchange rate for the shares is planned to be 50 cents. The exchange rate is
based on the prevailing market price of the company’s shares and on preliminary
indications from the investors. Company has received preliminary conditional
indications for more than EUR 30 million from certain institutional investors.
Company is aiming to issue the convertible capital loan by the end of May. 
Company’s advisor and the arranger for the loan is Alexander Corporate Finance
Oy. 

The negotiations with the Turkish banks concerning additional financing to the
Turkish subsidiary and extension of the maturities are proceeding. 

When realized, the arrangement will enable the implementation of the company’s
new strategy and profitability improvement during the coming years. 

The arrangement is subject among others that the extraordinary general meeting
to be held on 15 April 2016 will resolve on the authorization for the Board of
Directors to decide on a share issue and an issuance of special rights
entitling to shares, amounting in aggregate to maximum 100,000,000 shares, that
the company will issue the convertible capital loan and that an agreement is
reached with the Turkish banks on the additional financing to the Turkish
subsidiary. 

The company aims to publish more information on the arrangement by 31 May 2016.

Helsinki, 1 April 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.