SRV Group Plc plans to strengthen its balance sheet with new financing arrangements
SRV GROUP PLC INSIDE INFORMATION 26 APRIL 2019 11.55 EET
SRV Group Plc plans to strengthen its balance sheet with new financing arrangements
SRV Group Plc is exploring the possibility to issue a new hybrid bond with an estimated size of EUR 45-60 million and to prematurely repay outstanding debt. The proceeds of the new hybrid bond would be used to partially and prematurely purchase notes of the EUR 45 million hybrid bond issued in March 2016 and the EUR 100 million unsecured bond due March in 2021 through a voluntary tender offer.
The final amount to be purchased and its allocation between the existing hybrid bond and the notes would be decided after the end of the tender offer period and the completion of the issuance of the planned new hybrid bond.
The company estimates that the planned financing arrangements, if completed, would significantly improve key figures of its balance sheet. The company estimates that the improvement in the financial position gained through the completion of the arrangements would accelerate operational development and profitability improvement as well as the company’s other financing arrangements.
The company intends to execute the financing arrangements during the next few weeks. SRV has initially held discussions with certain investors that have indicated their interest to participate in the hybrid bond issuance. There are risks related to market conditions and other uncertainties that can have an impact on the completion of the planned arrangements, and there can be no assurance that the arrangements would be completed as planned or at all.
For further information, please contact:
Ilkka Pitkänen, CFO, Tel. +358 40 667 0906, ilkka.pitkanen@srv.fi
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SRV in brief
SRV is a bold developer and innovator in the construction industry. We want to offer the best customer experience as a constructor of urban city centres, while also being the most attractive employer in the industry. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.
Established in 1987, we are a publicly listed company since 2007 in Helsinki Nasdaq stock exchange that operates in selected growth centres in Finland and Russia. Our revenue in 2018 was EUR 960 million. Over 1,000 people work for us and we employ a network of almost 4,000 subcontractors in our projects.
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