Componenta - Company Announcement

Componenta has accepted subscriptions for a convertible capital loan of EUR 40 million

Componenta Corporation Stock Exchange Release 11.5.2016 at 8.00

The Board of Directors of Componenta Corporation (the “Company”) has accepted
subscriptions for a convertible capital loan (the “Loan”) of EUR 40 million in
total which corresponds to the maximum amount of the Loan. The Loan was offered
to selected investors. EUR 25.4 million of the subscription price will be paid
in money and EUR 14.6 million by setting off the subscription price against a
loan receivable from the Company. The issuance date of the Loan is 16 May 2016. 

“The consummated financial arrangement will reduce our debt level and it
improves the liquidity. With this we continue to do actions to improve the
profitability. I thank all the investors for their trust”, says CEO Harri
Suutari. 

The Loan is a bullet loan and its maturity is four (4) years. The Company may
not prepay the Loan before its maturity date. The issuing price of the Loan is
100 per cent and the interest of the Loan is 2 per cent per annum. The Loan can
be converted into shares in the Company during the term of the Loan. The
subscription price of a share is EUR 0.50. The subscription price is considered
to be fair to all shareholders taking into account on one hand the Company’s
share price at the time of the Loan issuance and, on the other hand, the need
to secure the success of the Loan issuance. As a result of the subscriptions
based on the shares of the Loan, the Company will issue the maximum of 80
million new shares. 

Negotiations relating to additional financing to the Company’s Turkish
subsidiary are proceeding as planned. 

The issuing of the Loan enables to discharge of secured bank loans and a
secured bond. The financial arrangement is expected to be finalized on 16 May
2016. 



Helsinki, 11 May 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.