Hexagon Composites ASA: Update to proposed bond agreement amendments
Hexagon Composites (“The Company”), as reported in its Stock Exchange Release of 8 October 2020, approached Bondholders in regards to its senior unsecured bond issue (HEX03 - ISIN NO NO0010846280), detailing a proposal to amend the terms of the Bond to ring-fence Hexagon Purus from the definition of the Hexagon Group and permit a one-time non-cash distribution of up to 25% of the shares of Hexagon Purus to existing Hexagon Composites ASA shareholders.
The Company presented its case to the bondholders. The proposed case would have substantially improved the credit quality of Hexagon by enabling the listing of Hexagon Purus, giving Hexagon Purus its own funding capability and drawing-away the dilutive cashflow from the newly defined group that would service the bond.
As reported in its Stock Exchange Release of 15 October 2020, The Company’s written resolution was voted down.
The proposal was rejected by a group of bondholders acting together to block the resolution by exercising a negative vote. Subsequent efforts to reach an agreement with this group of bondholders have not led to an acceptable resolution.
Hexagon Composites ASA will continue as planned with a listing of Hexagon Purus on the Merkur Market within 2020. However, as a result of this recent development, the Company will proceed with a modified process to that announced in Stock Exchange Release of 24 August 2020 which references the Company’s intention to spin off and list Hexagon Purus. The Company will consider possibilities to distribute Hexagon Purus shares to shareholders of Hexagon Composites ASA at a later stage.
More information on the intended listing will be provided in due course.
Contacts:
David Bandele, CFO, Hexagon Composites ASA
Telephone: +47 920 91 483 | david.bandele@hexagongroup.com
Karen Romer, SVP Communications, Hexagon Composites ASA
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com
About Hexagon Composites ASA
Hexagon delivers safe and innovative solutions for a cleaner energy future. Our solutions enable storage, transportation, and conversion to clean energy in a wide range of mobility, industrial and consumer applications.
About Hexagon Purus
Hexagon Purus, a Hexagon Composites company, enables zero emission hydrogen and battery electric mobility for a cleaner energy future. Hexagon Purus is a world leading provider of Hydrogen Type 4 high-pressure cylinders, battery packs and vehicle systems integration for fuel cell electric and battery electric vehicles (FCEV and BEV), including hybrid mobility applications on light, medium and heavy-duty vehicles, transit buses, ground storage, distribution, marine, rail, aerospace and backup power solutions.
Learn more at www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.