Lindex agrees on terms for financing proposed recapitalisation
15 Sep '07
2 min read
It has been decided that the breakdown between cash and bonds of the 3 billon kronor recapitalisation proposed by Lindex's board shall be 2 billion kronor in cash and 1 billion kronor in the form of subordinated bonds.
This corresponds to some 44 kronor per share, of which 29 kronor in cash and 15 kronor in the form of listed bonds.
On September 7, as the first stage in its recapitalisation, AB Lindex has arranged a two billion kronor line of credit.
As previously announced, Lindex's Board has recommended shareholders to reject KappAhl's bid of 102 kronor per share.
The Board intends to propose that an Extraordinary General Meeting resolve instead in favour of a recapitalisation of the company, whereby Lindex's shareholders will receive three billion kronor.
The Board's recommendation is based primarily on an analysis of the company's capital requirements and the new situation brought about by the new Swedish Companies Act.
In connection with the recapitalisation a one billion kronor subordinated bond will be issued to Lindex's shareholders. According to the proposal, the bond will be listed and carry interest at the normal market rate.
The line of credit is for five years, and the estimated average rate of interest during its term will be 5.5 %.
"Now that we can announce the details of the financing package, the market can estimate the value of the proposed recapitalisation without any uncertainty regarding the balance between cash and the bond," says Conny Karlsson, chairman of Lindex.
marketing@alchempro.com
