Etrion Corporation Closes Books on Corporate Bond Refinancing
June 1, 2018, Geneva, Switzerland – Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), a solar independent power producer, announces closing of books and issuance of a new senior secured bond (the “New Bond”) in the Nordic bond market of EUR 40 million, under a framework of a maximum amount of EUR 65 million. The Company’s holding of EUR 6.3 million in the existing bonds will be rolled-over into the New Bonds, which is included in the issued amount, and can be sold at a later date if additional funding is required.
The New Bond has an annual interest rate of 7.25% and a bullet maturity in May 2021. The Company intends to list the New Bond on the Frankfurt Stock Exchange Open Market within 30 days and the Oslo Stock Exchange within six months from the issue date.
The net proceeds from the New Bond will be used to refinance the Company’s existing EUR 40 million senior secured bond that pays 8.0% annual interest and matures in April 2019 with ISIN NO0010709272. The existing bonds have been called for redemption in accordance with their terms at a price of 101% of par plus accrued interest and will be redeemed on 17 July 2018.
Marco Antonio Northland, the Company’s CEO, commented, “I am pleased to have completed the refinancing of our corporate bond in order to extend the maturity and reduce the interest rate. We received strong demand from Nordic investors with positive validation for our strategy to focus on Japan. The solar power market in Japan continues to deliver very strong economics returns with sustainable long-term growth enabling Etrion to deliver shareholder value in a socially responsible manner.”
Pareto Securities acted as financial adviser and sole manager for the bond issue. Advokatfirmaet Selmer DA acted as legal adviser to the sole manager, and Michelet & Co acted as legal adviser to Etrion.
About Etrion
Etrion Corporation is an independent power producer that develops, builds, owns and operates utility-scale solar power generation plants. The Company owns and operates 56.7 MW of solar capacity, all in Japan. Etrion also has several projects in the backlog and pipeline at different stages of development in Japan. The Company is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker symbol “ETX”. Etrion’s largest shareholder is the Lundin family, which owns approximately 36% of the Company’s shares directly and through various trusts.
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Etrion discloses the information provided herein pursuant to the Swedish Securities Market Act. The information was submitted for publication at 15:20 CET on 1 June, 2018.