Cash issuances in relation to Song Network's financial restructuring

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Cash issuances in relation to Song Network's financial restructuring completed Song Networks Holding AB (Stockholmsbörsen: SONW) announces that the cash issuances related to the Company's financial restructuring have been carried out according to plan. The cash issuances will provide the Company with approximately SEK 495 million in liquid funds before deduction of issue costs. Through the cash issuances the financial restructuring is in all essentials completed and Song is thus virtually debt free. On January 17 the two issuances with preferential rights were completed. The subscription rate for shareholders with preferential rights was approximately 90% or SEK 88 million for the share issue and approximately 70% or SEK 58 million for the issue of convertible debentures. Since the two issuances are, as earlier announced, fully guaranteed, the remaining shares and convertibles will be allotted to the guarantees. The issued debentures will be subject to trading on the Swedish stock exchange Stockholmsbörsen. In addition to the preferential rights issuances Song has carried out a series of issuances directed to parties in the financial restructuring. -Directed share issue to Vattenfall and Stena, amounting to SEK 300 million. -Directed convertible issue to Stena in a nominal amount of SEK 15 million. In total the preferential right issuances and the directed issuances will provide the Company with SEK 495 million in liquid funds before deduction of issue costs. The amount of shares in Song will after these issuances and full exchange of bonds amount to 55,8 million shares before conversion of the convertible debentures, which give right to conversion to approximately 2,5 million shares. For information, please contact: Song Networks Holding AB Tomas Franzén, Chief Executive Officer Phone: +46 8 5631 0111 Mobile: +46 701 810 111 About Song Networks, formerly Tele1 Europe, (Stockholmsbörsen: SONW) Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Den mark. The Company's business concept is to offer the best broadband solution for data communication, Internet and voice to businesses in the Nordic region. The Company has built local access networks in the largest cities in the Nordic region. The Company was founded in 1995 in Sweden and have approximately 975 employees per September 30. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. Certain statements contained in this press release contain "forward- looking statements" within the meaning of the U.S. federal securities law. Such statements are based on the current expectations of the management of Song Networks Holding AB only, and performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments; decline in demand for the company's services or products; inability to timely develop, introduce and market new technologies, products and services; pricing pressures resulting from competition; unforeseen construction delays; and the inability to successfully manage systems failures or shutdowns and service interruptions or reduced services to customers. For a more detailed discussion of such risks and uncertainties affecting the company, please refer to Song Networks Holding AB's reports that are filed from time to time with the U.S. Securities and Exchange Commission, including the company's annual report on Form 20-F and reports on Form 6-K. ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: