SIBS AB (publ) ("SIBS") today announces that it has reached an agreement in principle with certain bondholders representing 69 per cent of the adjusted outstanding nominal amount of SIBS' senior secured bonds with ISIN SE0023112487 (the "Bonds") in respect of making certain amendments to the terms and conditions of the Bonds (as further set out below) to reflect covenant light financing terms, subject to, amongst other things, (a) SIBS and its subsidiaries undertaking to raise, and being successful in raising, no less than SEK 400,000,000 in new equity, and (b) SIBS redeeming of Bonds in an aggregate amount of no less than SEK 200,000,000.
The agreement in principal mark an important step for SIBS and provides a foundation for SIBS to raise the additional equity of SEK 400,000,000 from new and existing shareholders to support SIBS and its subsidiaries' long-term growth and success. Furthermore, the amended terms will provide SIBS with more operational freedom to act in the best interest of all stakeholders in its continued pursuit of creating value.
SIBS wants to extend its sincere gratitude to its bondholders for their continued trust and support.
"We are pleased to have reached this agreement in principle with our bondholders. We appreciate the engagement and continued trust our bondholders have extended throughout this process. The amended terms will provide the operational foundation we need as we work to execute on our business plan and raise the planned new equity", says Erik Thomaeus, CEO of SIBS.
The key highlights of the proposed amendments to the terms and conditions for the Bonds are set out below and the full extent of amendments will be set out in a Written Procedure and may be subject to amendments and additions following discussions between SIBS and the relevant bondholders:
- In order to achieve a viable capital structure long term, the Bonds will be written down in an amount so that the outstanding amount after the effectiveness of the amendments amount to SEK 500,000,000 plus accrued interest. No maintenance test will apply.
- No dividends or other distributions to shareholders will be permitted until the Bonds are redeemed in full.
- The interest rate will be amended to a fixed interest rate of 7.50 per cent per annum and the maturity will be extended to 31 March 2028.
- Added flexibility for SIBS' Malaysian subsidiaries to incur debt needed for its business and operations.
- Added flexibility for SIBS to incur debt and its subsidiaries to incur debt in respect of properties and construction projects.
- Two amortizations in respect of the Bonds will be introduced in an amount of SEK 50,000,000 on 31 January 2027 and in an amount of SEK 50,000,000 on 30 July 2027.
- As a prerequisite for making of the amendments, SIBS will issue warrants to bondholders, pro rata, who subscribe for such in the written procedure to be announced.
Furthermore, SIBS has reached an agreement in principle with certain bondholders representing a majority of the adjusted outstanding nominal amount of the Bonds in respect of disapplying of the maintenance covenants for the reference period ending on 31 March 2026 and making certain reporting amendments to allow SIBS to publish its consolidated audited annual financial statements within 6 months of the end of the financial year of 2025.
For more information, please contact:
Johan Dufvenmark, CFO
jd@sibs.se
+46 70-597 43 75
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