Opus issues USD 50 million L/C backed bonds in the U.S.
Opus Group AB (publ) has issued USD 50 million Taxable Corporate Notes, commonly known as Letter of Credit (L/C) backed bonds, in the U.S. The proceeds from the transaction will be used for refinancing of existing debt, thereby securing our cash position to support Opus’ continued growth.
The L/C backed bonds of USD 50 million carry a variable short-term taxable interest rate, in line with LIBOR 7 days. The L/C backed bonds are guaranteed through a letter of credit issued by Swedbank AB (publ), New York Branch. The letter of credit has a maturity of three years and is extendable upon agreement. S&P Global Ratings has assigned long-term and short-term issue credit rating of “AA-/A-1+” for the L/C backed bonds. The maturity under the framework of the L/C backed bonds is 15 years. The bonds may be prepaid by Opus, in whole or in part, at no additional cost.
“These L/C backed bonds will further decrease Opus’ foreign exchange exposure in USD, lower our financing cost and support our growth plan”, says Linus Brandt, CFO and Executive Vice President of Opus.
Opus is a leading vehicle inspection and vehicle services company headquartered in Sweden, with operations in Europe, North and South America and Asia.
For additional information, please contact:
Lothar Geilen, CEO
Tel: +46 31 748 34 00
Director of Corporate Communications & Investor Relations
Phone: +46 765 25 84 93
Opus is a technology driven growth company in the vehicle inspection and vehicle services markets. The company has a strong focus on customer service and innovative technology within emission and safety testing and vehicle services. The Group had approximately SEK 1.7 billion in revenues in 2016 with strong operating cash flow and good operating profitability. Opus’ plan is to double its revenues to reach USD 400 million in revenues and USD 100 million in EBITDA by 2021. The main growth is estimated to come from the expansion of the vehicle communication and services business and the international expansion of the vehicle inspection business with a primary focus on the Latin American and Asian markets. With approximately 2,000 employees, Opus is headquartered in Gothenburg, Sweden. Opus has 30 regional offices of which 20 are located in the United States and the others in Stockholm, Peru, Chile, Argentina, Australia, Germany (dormant), Mexico and Pakistan. Opus has production facilities in the U.S. in Hartford, Ann Arbor and Tucson. The Opus share is listed on Nasdaq Stockholm.