SRV has entered into a facility agreement regarding its revolving credit facility
SRV GROUP PLC INVESTOR NEWS 28 FEBRUARY 2020 AT 16.15 EET
SRV has entered into a facility agreement regarding its revolving credit facility
SRV announced on 6 February 2020 by way of a stock exchange release new actions to be carried out under its recovery programme, including the conversion of its existing EUR 100 million revolving credit facility into two separate revolving credit facilities of EUR 60 million and EUR 40 million.
SRV has today, on 28 February 2020, entered into a facility agreement regarding the conversion of its existing EUR 100 million revolving credit facility into two separate revolving credit facilities of EUR 60 million and EUR 40 million.
The revolving credit facilities of EUR 60 million and EUR 40 million contain a term pursuant to which SRV's general meeting of shareholders shall, by 30 April 2020, authorise the directed share issue and rights issue as shall be proposed by the board of directors of SRV.
As was announced by SRV on 6 February 2020, the board of directors of SRV will propose to the annual general meeting of shareholders convening on 26 March 2020 that sufficient share issue authorisations are granted in order to resolve on the aforementioned share issues. SRV has received commitments from shareholders, whose shares represent more than two thirds of the issued and outstanding shares in SRV, to vote in favour of the proposals of the board of directors of SRV in the general meeting of shareholders.
If the general meeting of shareholders of SRV does not approve them, SRV must present an alternative solution achieving an equivalent financial outcome acceptable to all the creditor banks. If neither of the alternative conditions is met by 30 April 2020, the creditors of the revolving credit facility will have the right to accelerate the facility. In addition, if the general meeting of shareholders does not authorise the said share issues, SRV will no longer have the right to make drawdowns under its EUR 40 million revolving credit facility, unless all the creditor banks provide their consent to such drawdowns and approve the aforementioned alternative solution achieving a financial outcome equivalent to the share issues.
For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Ilkka Pitkänen, CFO, tel. +358 (0)40 667 0906, ilkka.pitkanen@srv.fi
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SRV is a 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 2019 was EUR 1,061 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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