Stockmann to issue further capital securities under its EUR 85 million hybrid bond
STOCKMANN plc, Inside Information, 31.10.2019 at 17:00 EET
Stockmann plc (the “Issuer” or “Stockmann“) will issue further capital securities in an aggregate nominal amount of EUR 21 million (the “Further Capital Securities”) by way of a further issue pursuant to the terms and conditions of its outstanding EUR 85 million capital securities (ISIN: FI4000188776) (the “Capital Securities”).
The Further Capital Securities will be issued on the same terms (save for the issue price and the issue date) as the Capital Securities and the Further Capital Securities will be consolidated and form a single series with the Capital Securities. The settlement date for the issue of the Further Capital Securities will be 7 November 2019.
The Further Capital Securities were offered for subscription to certain largest shareholders of Stockmann in a private placement procedure and were subscribed by Föreningen Konstsamfundet r.f., Kari Niemistö and Svenska litteratursällskapet i Finland rf. The issue price for the Further Capital Securities is 100 per cent. of their nominal amount (together with interest accrued thereon from 31 January 2019).
As the Capital Securities are not traded on any public trading venue, they have no officially quoted market price. The issue price of the Further Capital Securities is not intended to reflect an objective market price or Stockmann’s view of a fair market price for the Further Capital Securities or the outstanding Capital Securities. However, it is the understanding of Stockmann that the issue price for the Further Capital Securities is slightly higher than the price for which the Capital Securities have recently been traded in private OTC transactions. The subscription of the Further Capital Securities by certain largest shareholders of Stockmann therefore contains a support element for the benefit of the company. The Further Capital Securities will strengthen Stockmann’s capital structure and net proceeds thereof will also be used to pay down debt.
A hybrid bond is an instrument which is subordinated to the company’s other debt obligations and which is treated as equity in the company´s consolidated financial statements prepared in accordance with the IFRS. The hybrid bond does not confer to its holders the rights of a shareholder and does not dilute the holdings of the current shareholders.
Pekka Vähähyyppä, CFO, tel. +358 50 3890012
Nasdaq Helsinki Ltd