As announced in July 2016 it is Cloetta AB (publ)’s intention to redeem its outstanding SEK1,000 million senior secured bonds due 2018 (the “Bonds”) as part of an overall refinancing of its existing debt financing. Cloetta has today therefore given irrevocable notice to the holders of the Bonds that it has exercised its option for the early redemption of the Bonds in full.
The date on which the redemption will occur will be 19 September 2016 (the “Early Redemption Date”). The total outstanding amount of the Notes is SEK1,000,000,000.
The Notes will be redeemed at an amount equal to the sum of:
(a 103.00 per cent of the Nominal Amount (i.e., SEK1,030,000 per SEK1,000,000 of Bonds held); and
(b) accrued but unpaid interest, from, but excluding, the preceding Interest Payment Date up to, and including, the Early Redemption Date (together, the “Call Option Amount”).
The recorded date for holders of the Bonds subject to the early redemption shall be 12 September 2016 and the last trading date to have a transaction registered on such record date is 8 September 2016. In conjunction with the early redemption, the Bonds will be delisted from the corporate bond list at NASDAQ Stockholm.
The Bonds are being redeemed early in connection with Cloetta’s recent signing of a new term and revolving facilities agreement with a group of four banks, amounting in total to the equivalent of SEK 3,700m (the “Facilities Agreement”) which will be partially used to refinance its existing bank financing. The new financing package includes a bridge loan of SEK 1,000m which Cloetta will use to fund the redemption of the Bonds. The Facilities Agreement, along with the redemption of the Bonds, is expected, excluding one off expenses, to reduce the group’s net financial items by approximately SEK 140m over a five year period, whereof SEK 50m in 2017.
This information is information that Cloetta AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, on 17 August 2016 at 08.00 CET a.m.
Jacob Broberg, SVP Corporate Communications & Investor Relations, 46 70 190 00 33.