Peab Participates in Consortium Investing in Northland
Northland has today announced the availability of a draft of a long-term financial solution, meaning that the company raises USD 335 million through the issue of bonds.
A consortium comprising Folksam, Metso, Norrskenet and Peab invests USD 25 million each, thus totaling USD 100 million in Northland bonds. The investment consortium obtains the right to appoint four out of seven Board directors. The aim is to create the necessary influence and to provide expertise with the mission to restore confidence in the company.
Northland will, with this, get a new Board. The consortium has proposed Olav Fjell as Chairman of the Board and will, when the bond offering is fully subscribed and accepted, propose three additional Board directors.
Peab’s outstanding debts will be converted into an interest bearing supplier loan with semi-annual amortization from January 2016 to maturity at the latest in July 2020.
The refinancing of Northland ensures outstanding depts and that Peab may pursue existing construction contracts and the 10-year contract for the transportation of iron ore to Narvik.
“It is very gratifying that Northland now has a long-term solution in place. By investing in the bond together with Folksam, Metso and Norrskenet, we will create a controlling influence and provide expertise and thus secure future optimal operations of the company. For Peab it is very positive that we can fulfill our contracts for works and transportation services”, says Peab’s CEO Jesper Göransson.
The basic condition for the consortium and each part’s share of USD 25 million, is that the bond offering is fully subscribed when the subscription expires 22:00 CET on 30 May 2013, and that the consortium will appoint four out of seven directors of the Board
For further information, please contact:
Jesper Göransson, CEO Peab +46 431 89338
Gösta Sjöström, CIO Peab +46 733 371010
Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication on 29 May 2013 at 11.15 p.m.
Peab is the Nordic Community Builder with some 14,000 employees and about SEK 45 billion in net sales. The Group’s subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on NASDAQ OMX Stockholm. The registered office of the Group is at Förslöv, Skåne in south of Sweden.