Rapala VMC Corporation
Stock Exchange Release
April 18, 2019 at 4:30 p.m.
RAPALA VMC CORPORATION WILL REDEEM THE EUR 25 MILLION HYBRID BOND AND HAS SIGNED NEW FINANCING AGREEMENTS
Rapala VMC Corporation ("the Group”) will redeem the EUR 25 million hybrid bond (ISIN: FI4000261375) issued on 31 May 2017. The redemption will be made on 31 May 2019 for the full outstanding amount in accordance with the terms and conditions of the hybrid bond. The holders of the Hybrid Bond are not required to take any action in respect to the redemption.
A hybrid bond is an instrument, which is subordinated to the company’s other debt obligations. It is treated as equity in the IFRS financial statements. A hybrid bond does not confer to its holders the rights of a shareholder and does not dilute the holdings of the shareholders.
Rapala VMC Corporation has signed new bilateral financing agreements with Nordea Bank Abp and OP Corporate Bank Plc with a total nominal amount of EUR 51 million. New financing agreements will replace and refinance current and maturing loan agreements. The new financing facilities are unsecured and include net debt, EBITDA and equity based financial covenants.
After signing the new financing agreements the maturity profile of Group’s long-term loans, drawn and committed undrawn revolving credit facilities is the following: Year 2020: MEUR 35, 2021: MEUR 25, 2022: MEUR 26, 2023: MEUR 20, 2024: MEUR 5.
The Group’s financing strategy is to continuously evaluate different funding options in order to have a financing structure, which optimizes the total cost of funding and provides required flexibility to implement the Group’s overall strategy.
RAPALA VMC CORPORATION
Chief Executive Officer
For further information, please contact:
Jan-Elof Cavander, Chief Financial Officer, tel. +358 9 7562 540
Distribution: Nasdaq Helsinki and main media
Rapala VMC Corporation ("the Group”) is a leading fishing tackle company and the global market leader in fishing lures, treble hooks and fishing related knives and tools. The Group also has a strong global position in other fishing categories and it is one of the leading distributors of outdoor, hunting and winter sport products in the Nordic countries. The Group has the largest distribution network in the industry. The main manufacturing facilities are located in Finland, France, Estonia, Russia, Indonesia and the UK. The Group brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini and Peltonen. The Group, with net sales of EUR 262 million in 2018, employs some 2 700 people in 42 countries. Rapala VMC Corporation’s share is listed and traded on the Nasdaq Helsinki stock exchange since 1998.