Faktor Eiendom ASA – Restructuring of debt and contemplated private placement

Report this content

Faktor Eiendom is presenting a restructuring proposal to the shareholders to address the financial situation in the company. With reference to the 4. quarter 2009 report and earlier press releases, the company cash flow and financial situation has been weak over the last quarters Faktor Eiendom has over the last weeks worked with the banks to meet the capital requirements for the activities to be completed in the 2010-2011 period. The new debt package provides substantial improvement of the long term debt package, the liquidity situation as well as a platform to complete and sell projects going forward Main debt terms after renegotiations: – DnBNOR to convert NOK 250 million in debt to equity at NOK 1.12 per share – No debt maturities before the end of 2015 or later (construction loans to end when units sold) – Credit facilities in place to complete major projects – Considerable reduction of debt and increased cash position (NOK 250 mill) after equity issue Contemplated Private placement - NOK 250 million in new equity – NOK 250 million in new equity (private placement) – Start of book-building: 20 April 2010 – Close of book-building: 22 April 2010, at 17:30 CET – Can be closed earlier or extended at the Company’s own discretion, but the book-building will in any event not close prior to 19:00 CET on 20 April 2010 – Share price in new issue determined in a book building process – Indicative price range: NOK 0.90-1.10 per share – The Private Placement is conditional upon the extraordinary general meeting in the Company scheduled to be held on or about 14 May 2010 (the “EGM”) approving the share capital increase Important agreements recently signed: – April 12: Signed contract with Studentskipnaden in Bergen, to build 730 units in Bergen with a contract value of NOK 305 million. The contract confirms the potential of the new module factory – April 16: Faktor Eiendom received bid for hotel in Halden. Bid price NOK 80 million The company has been in contact with Oslo Stock Exchange for extension of the suspension of trading until the private placement is finalized. Contact person: Rune Kilebu, COO +47 905 922 70