Ericsson files amendment to F-3 Registration Statement with the Securities and Exchange Commission
In connection with the proposed rights offering, Ericsson has filed an amendment to the Registration Statement on Form F-3 with the United States Securities and Exchange Commission (SEC).
The filing does not represent the final Form F-3 and is subject to further amendments.
This amendment includes previously announced information including the terms and conditions of the proposed rights offering.
The amendment also contains the terms of the underwriting agreements with a group of banks, as well as generic forms of the agreements with several large shareholders.
These agreements are part of the total arrangement to fully secure the SEK 30 b. rights offering, whereby several large shareholders have agreed to purchase up to SEK 10 b. provided that the remaining SEK 20 b. is underwritten.
The underwriting agreement contains customary terms and conditions, one of which is a credit rating at or above BB by Standard & Poor's or Ba3 by Moody's until the completion of the rights offering.
These minimum credit ratings are several notches below the company's current rating. Downgrades to these levels before completion of the rights offering are considered unlikely by management. This view is supported by Moody's statement that they expect to confirm their latest rating of Ba1 after the completion of the rights offering.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Our organization consists of 99,000 experts who provide customers in 180 countries with innovative Solutions and services. Ericsson has the world’s leading patent portfolio in cellular technology, with more than 54,000 granted patents. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2019 were SEK 227 billion. The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.