Grammer AG to issue a mandatory convertible bond in a nominal amount of EUR 60 million to strategic partner

(PresseBox) ( Amberg, )
Acting with the consent of the Supervisory Board, the Executive Board of Grammer AG has today passed a resolution to issue a mandatory convertible bond in a nominal amount of EUR 60 million subject to the exclusion of the shareholders’ preemptive subscription rights. The mandatory convertible bond will be convertible into shares of the company equivalent to approximately 9.2 percent of its share capital.

The mandatory convertible bond will be issued to a company affiliated with the Chinese automotive component supplier Ningbo Jifeng Auto Parts Co. Ltd (“Ningbo Jifeng”). The issue of the mandatory convertible bond forms a key element underlying the future strategic partnership between the two companies. This strategic alliance will improve the joint competitive position of the two internationally active automotive interior specialists – particularly in the Chinese market – thus securing both companies’ future growth and enhancing their enterprise value. As future strategic shareholder, Ningbo Jifeng will enlarge Grammer AG’s shareholder base and thus support the continuation of the company’s successful corporate strategy.

The mandatory convertible bond will convert into approximately 1,062,447 shares from the company’s contingent capital. The conversion price amounts to EUR 56.4734 while the bond has a coupon of 1.625 percent. The mandatory convertible bond must be converted into shares of the company after the expiry of a one-year period after issuance unless the bond creditor exercises its conversion right at an earlier date.

Grammer AG will be using the proceeds from the issue to finance its strategic growth in Germany as well as internationally and for general company purposes.
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