Brief: Leoni AG Has Fundamentally Agreed On Refinancing Plan With Its Syndicate Banks

Leoni AG

06/07/2022 13:20

July 6 (Reuters) - Leoni AG  LEOGn.DE :
    * LEONI AG HAS FUNDAMENTALLY AGREED ON A REFINANCING PLAN
WITH ITS
SYNDICATE BANKS
    * TERMS OF LEONI GROUP'S FINANCIAL INSTRUMENTS CURRENTLY
EXPIRING
AT END OF 2022 ARE IN PRINCIPLE TO BE EXTENDED UNTIL END OF
DECEMBER 2025.
    * NET PROCEEDS FROM SALE OF BUSINESS GROUP AUTOMOTIVE CABLE
SOLUTIONS (BG AM) ARE TO BE USED UP TO A TOTAL AMOUNT OF EUR 442
MILLION TO REPAY FINANCIAL LIABILITIES OF LEONI GROUP
    * FOUR SYNDICATE BANKS UNDER COMPANY'S REVOLVING CREDIT
FACILITY
(RCF I) AGREED IN 2018 WILL ALSO BE GIVEN OPTION OF CONVERTING A
MAJOR PROPORTION OF THEIR LOANS THAT ARE NOT SETTLED FROM
PROCEEDS OF BG AM DISPOSAL
    * AMOUNT PROBABLY TOTALLING EUR 132 MILLION ('REMAINING RCF
I
RECEIVABLES') INTO EQUITY INSTRUMENTS OR IN THIS RESPECT TO SEEK
EARLY REPAYMENT FROM INCOME FROM AN EQUITY TRANSACTION
    * LEONI AG WILL, PROBABLY AT END OF 2022 OR BEGINNING OF
2023,
CARRY OUT A COMBINATION OF A CAPITAL INCREASE FROM AUTHORISED
CAPITAL AND ISSUE OF A MANDATORY CONVERTIBLE BOND
    * LEONI AG IS NOT TO PAY OUT ANY DIVIDEND UNTIL RESTRUCTURED
CREDIT LINES ARE REPAID.
    * NEW SHARES AND BONDS WILL BE OFFERED TO LEONI AG
SHAREHOLDERS TO
PURCHASE FOR CASH, WHEREBY NEW SHARES OR CONVERTIBLE BONDS UP TO
10 % OF SHARE CAPITAL MAY ALSO BE ISSUED WITHOUT PRE-EMPTIVE
RIGHTS IN ACCORDANCE WITH CAPITAL AUTHORISATIONS
    * REFINANCING PLAN WILL PROBABLY REDUCE LEONI GROUP'S
FINANCIAL
LIABILITIES BY EUR 574 MILLION, OF WHICH EUR 442 MILLION WILL
STEM FROM REPAYMENT OF LIABILITIES USING FUNDS FROM BG AM SALE
    * EUR 132 MILLION IS LIKELY TO COME FROM RESTRUCTURING
REMAINING
RCF I RECEIVABLES.

Source text for Eikon:  ID:nEQ9xJNSYa 
Further company coverage:  LEOGn.DE 

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