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Electronics Production | January 27, 2010

Elcoteq repays €105 Mn. debt

As part of its previously balance sheet restructuring, Elcoteq has decided to issue EUR 29 million hybrid securities in a private placement.
The proceeds from the hybrid securities issue will be used directly to repay EUR 105 million nominal amount of Elcoteq's existing outstanding debenture bonds. The announced restructuring will decrease the Company's indebtedness.

The repayment of EUR 105 million debenture bonds is related to the Company's announcement on October 21, 2009 to collect irrevocable selling commitments from the holders of its subordinated debenture bonds. The Company will now proceed to exercise these irrevocable commitments. As a result of this transaction, the company estimates that it will recognize a one-time gain of approximately EUR 75 million in the first quarter of 2010.

"We are very satisfied that we have been successful in this effort to restructure a significant part of outstanding debts of Elcoteq. This arrangement is a major step in the process to provide further confidence to Elcoteq's customers and other stakeholders", says Jouni Hartikainen, President and CEO of Elcoteq.

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