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Cherry issues secured bond5 July 2016(PRESS RELEASE) -- Cherry AB (publ) announces that the company has decided to issue a four-year senior secured bond in the amount of EUR 50 million, with maturity on July 11, 2020. The net proceeds will be used to partly finance the acquisition of 49% of the shares in ComeOn Malta Ltd (tranche one) with an option to acquire the remaining 51% (tranche two). The acquisition of 49% of the shares in ComeOn is expected to be finalized during July 2016. The bond will give a floating rate coupon of Euribor 3 months + 9.00% with quarterly payments. The total framework amounts to EUR 200 million. Cherry intends to apply for listing of the bond on Nasdaq Stockholm within 30 days. The bond was successfully placed with over 70 investors throughout the Nordic region. "We are pleased with the large interest among Nordic investors for the bond issue, despite challenging market conditions. The access to the corporate bond market demonstrates investors’ trust for Cherry, the acquisition of ComeOn and our business model. The bond issue enables Cherry to complete the acquisition of the initial 49% of ComeOn," says Fredrik Burvall, CEO of Cherry. The final and total consideration for the shares in ComeOn will also be paid with a combination of newly-issued shares and cash. The cash part is to be financed with an expansion of the corporate bond, and the price for the new share issue will be calculated as the volume weighted average share price during the 15 trading days following Cherry’s announcement to exercise the option to acquire the remaining 51% in ComeOn (tranche two). The option can be exercised during the period October 1, 2016, to December 31, 2016. The total consideration can be a maximum of EUR 280 million on a debt-free basis. ABG Sundal Collier has acted as financial advisor and sole bookrunner for Cherry in connection with the bond issue. Roschier Attorneys has acted as legal advisor.
Cherry issues secured bond
is republished from Online.CasinoCity.com.
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