Brief: SRV Yhtiot Decides On Two Share Issues

SRV Yhtiot Oyj

06/05/2022 09:40

May 6 (Reuters) - SRV Yhtiot Oyj  SRV1V.HE :
    * AS A RESULT OF WAR SRV HAS DECIDED TO DIVEST ITS ASSETS IN
RUSSIA AT AN ACCELERATED SCHEDULE AND NEGOTIATED ON SALE OF
ASSETS THAT ARE LOCATED IN RUSSIA. NEGOTIATIONS ARE STILL
ONGOING.
    * AFTER WRITE-DOWNS, COMPANY IS UNABLE TO MEET COVENANT
PROVISIONS
SET OUT IN AGREEMENT REGARDING BONDS NOR CREDIT FACILITY IF IT
DOES NOT REORGANISE ITS FINANCING, WHICH WILL THEN TRIGGER
TERMINATION AND CALL-IN RIGHT INVESTED IN CREDIT FACILITY'S
CREDITORS AND HOLDERS OF BONDS
    * UPON COMPLETION OF RESTRUCTURING ACCORDING TO PLAN,
COMPANY'S
FINANCIAL POSITION IS EXPECTED TO BE MATERIALLY IMPROVED
    * COMPANY'S RUSSIA RELATED RISKS ARE LOW AND COMPANY WILL
FOCUS,
IN ACCORDANCE WITH ITS STRATEGY, ON ITS CONSTRUCTION BUSINESS IN
FINLAND ( COMPANY NO LONGER HAS ANY ONGOING CONSTRUCTION
PROJECTS IN RUSSIA OR ESTONIA)
    * AS A PART OF PROGRAMME, SRV'S BOARD OF DIRECTORS HAS
DECIDED TO
PURSUE TWO SHARE ISSUES (I.E. A RIGHTS ISSUE AND A DIRECTED
SHARE ISSUE) WITH COMBINED TOTAL SIZE OF APPROXIMATELY EUR 41.9
MILLION, AND TO PROPOSE CONVERSION OF TWO UNSECURED
FIXED-INTEREST BONDS INTO HYBRID CONVERTIBLE BONDS BY INCLUDING
SPECIAL RIGHTS IN BONDS' TERMS, WHICH WOULD ENTITLE TO SUBSCRIBE
SHARES IN COMPANY.
    * RIGHTS ISSUE WOULD IN TOTAL CORRESPOND TO APPROXIMATELY
EUR 35
MILLION.
    * SPECIFIC COS GIVEN THEIR ADVANCE UNDERTAKINGS TO COMPANY
WHERE
THEY STATE THAT THEY WILL SUBSCRIBE SRV'S NEW SHARES UNDER
CERTAIN CUSTOMARY TERMS. SHARES SUBSCRIBED BASED ON THESE
ADVANCE UNDERTAKINGS CORRESPOND TO A TOTAL OF 62.0% OF RIGHTS
ISSUE

Source text for Eikon:  ID:nWkrc2ydTj 
Further company coverage:  SRV1V.HE 

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