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2011-11-24 07:00:00 CET 2011-11-24 07:00:11 CET REGULATED INFORMATION Neomarkka - Company AnnouncementNEO INDUSTRIAL HAS APPROVED SUBSCRIPTIONS OF CONVERTIBLE BONDSNEO INDUSTRIAL OYJ STOCK EXCHANGE RELEASE 23 November, 2011 at 7.00 pm Neo Industrial has approved subscriptions of convertible bonds Neo Industrial Plc ("Neo Industrial" or the "Company") has today approved the subscriptions of senior unsecured convertible bonds due 2016 (the "Bonds") in an aggregate principal amount of EUR 6 million. The subscriptions are based on an offer of the Bonds to certain institutional investors that was announced earlier today. The Bonds are intended to diversify the Company's funding base, extend the debt maturity profile and improve the liquidity position. The Bonds 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 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 conversion price is EUR 2.78. 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 settlement date of the Bonds 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. “We are delighted by the successful completion of our EUR 6 million convertible bond offering today, which will strengthen our financial position, improve liquidity and increase our flexibility in developing our businesses”, commented Markku E. Rentto, Managing Director of Neo Industrial. 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. +358 207 209 191 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). |
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