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Electronics Production | May 03, 2010

Elcoteq finalises loan documentation on revolving Credit Facility

In March 2010, Elcoteq and the lenders of its EUR 100 million revolving credit facility signed a term sheet on extending the facility from April 30, 2010 until June 30, 2011. The parties have now concluded the final loan documentation relating to the committed credit facility.
The agreed facility shall be amortized by EUR 33 million by March 31, 2011. At the balance sheet date of December 31, 2009, EUR 100 million of the facility was in use. At the same time the Company had EUR 87 million in cash.

The extension of the revolving credit facility is an important step in the overall financial stabilization of the Company. The finalization of the loan documentation is also one condition for the implementation of the ongoing exchange offer to the debenture holders.

As part of the overall financing arrangement and in order to enhance possibilities for further balance sheet strengthening, the three founder shareholders of the company, Mr. Antti Piippo, Mr. Henry Sjöman and Mr. Jorma Vanhanen, have informed the Board of Directors that they will exercise their right to convert all of their series K founders´ shares to series A shares after which the company will have only one series of shares, A shares.

The conversion does not change the Company's ownership structure hence the three founders continue to have 41.38% ownership in the Company. However, the conversion will affect the voting structure by reducing the total voting rights of the founders from the current 84.81% to 41.38%.

Furthermore, all three founder shareholders of the Company, Mr. Piippo, Mr. Sjöman and Mr. Vanhanen, have given an undertaking to the lenders to vote in favor of any proposals of the Board of Directors of Elcoteq SE at the general meetings.

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