Brief: Bong reaches principle agreement with its lending banks

Bong AB

11/12/2015 07:10

Dec 11 (Reuters) - Bong AB  BOLJ.ST : 
    * Reaches principle agreement with its lending banks stipulating terms for company's 
acquisition of the banks' claims under the current bank facilities 
    * Payment for the above acquisition will be made through a cash consideration of 195 million 
Swedish crowns ($22.93 million) and, further, the banks will subscribe for about 27 million 
shares in Bong by way of set-off against part of the claims 
    * Banks will commit to transfer the shares currently held by the banks, about 23 million, 
for free to the bond holders in the contemplated bond issue 
    * Banks will be entitled to subscribe for 10 million shares in Bong through a directed issue 
at a subscription price of 1.00 crown per share 
    * Says the company is currently in process of raising up to 200 million crowns via senior 
secured bond issue to finance repurchase of banks' claims under current bank facilities 
    * Various measures described above would increase equity by about 500 million crowns 
    * Says company is on track to achieve its stated target of positive earnings before tax in 
2016 
 
 
Source text for Eikon:  ID:nWkrlk2721  
     
Further company coverage:  BOLJ.ST  
 
 
($1 = 8.5049 Swedish crowns) 
 
 (Gdynia Newsroom) 
 ((gdynia.newsroom@thomsonreuters.com; +48 58 698 3920;))