Opus issues a USD 25 million Taxable Corporate Note in the U.S.

Opus’ subsidiary Opus Inspection, Inc. has issued a Taxable Corporate Note commonly known as Letter of Credit Backed Bond of USD 25 million in the U.S. The proceeds from the transaction will be used for refinancing of existing debt and for Opus’ continued expansion.

The Letter of Credit Backed Bond of USD 25 million, issued by Opus Inspection, carries a variable short-term taxable interest rate, which is in line with LIBOR 7 days. The Corporate Note is guaranteed through a letter of credit issued by Swedbank AB (publ), New York Branch with a maturity of three years, which is extendible, upon mutual agreement. S&P Global Ratings has assigned long-term and short-term issue credit rating of “AA-/A-1+” for the Corporate Note. The maturity under the framework of the Corporate Note is 15 years. The bonds may be prepaid by Opus, in whole or in part, without cost.

“Opus is very pleased to have placed its first Letter of Credit Backed Bond. This long-term financing instrument creates high financial flexibility to Opus at an attractive cost structure and will support our growth plan”, says Lothar Geilen, CEO of Opus.

“Opus’ current financing is in SEK while Opus’ intercompany financing is predominantly in USD, which creates an FX exposure to the Group. This USD denominated instrument will help decrease Opus’ FX exposure in USD”, says Linus Brandt, CFO and Executive Vice President of Opus. “The corporate notes are normally placed on the U.S. money market, which is significant in size with high liquidity that creates good conditions for refinancing”, says Linus Brandt further.

Opus currently has SEK 1.2 billion in outstanding corporate bonds and will continue to use the Swedish corporate bond market for future financing.

Opus is a leading vehicle inspection and vehicle services company headquartered in Sweden, with operations in Europe, North and South America and Asia.

Mölndal, June 29, 2017
Opus Group AB (publ)

For additional information, please contact:
Lothar Geilen, CEO
Tel: +46 31 748 34 00
E-mail: lothar.geilen@opusinspection.com

or:

Peter Stenström
Investor Relations
Phone: 46 765 25 84 93
E-mail: peter.stenstrom@opus.se

About Opus Group

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 close to 1,800 employees, Opus is headquartered in the Gothenburg region of Sweden. Opus has 26 regional offices of which 20 are located in the United States and the others in Stockholm, Peru, Chile, Argentina, 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.