EQS-News: SEM will initiate a written procedure to request a two-month extension of the maturity date of its Bonds

SEM will initiate a written procedure to request a two-month extension of the maturity date of its Bonds

SEM will initiate a written procedure to request a two-month extension of the maturity date of its Bonds. SEM is already in discussions with an Ad-Hoc Bondholder Committee in order to obtain a long-term solution for its financing. Certain preliminary figures for Q3 2022 are also announced.


Swedish Electromagnet Invest AB (publ) (the "Company" or "SEM") announces that the Company has initiated negotiations with certain major holders of the Company's outstanding bond loan 2018/2022 with ISIN SE0011167600 (the "Bonds") (representing 50.6 per cent. of the outstanding adjusted nominal amount of the Bonds) (the "Ad-Hoc Bondholder Committee") in order to obtain a long-term solution for its financing. In order to provide time to finalise the negotiations with the Ad-Hoc Bondholder Committee, SEM will on or about 14 November 2022 initiate a written procedure under its Bonds with a request of an extension of the maturity of the Bonds with two months (the "Written Procedure"). If the extension is approved in the Written Procedure, the maturity of the Bonds will be extended to 10 February 2023. The Ad-Hoc Bondholder Committee has entered into voting undertakings to vote in favour of the extension request in the Written Procedure.

"We are conducting negotiations to get sustainable long-term financing terms in place. Such discussion and dialogue is carried out in a productive manner. SEM's business is developing well with good demand, not least from North America where the market for gas-powered heavy vehicles remains strong. We also have hopes that the demand in China will improve during 2023 after a long period of Covid restrictions. It is also pleasing that leading truck manufacturers predict a continued good market for heavy vehicles in 2023 in their Q3 reports", says Christina Hallin, CEO, SEM.

In connection with the publication of the intention to launch the Written Procedure, the Company also publishes certain preliminary financial information for Q3 2022. For the twelve-month period ending 30 September 2022, the net sales amounted to SEK 385.2 million and the EBITDA amounted to SEK 87.5 million. As per 30 September 2022, the Company's gross interest-bearing debt^[1] amounted to SEK 380.4 million, cash and cash equivalents^[2] amounted to SEK 29.6 million and the net interest-bearing debt^[3] amounted to SEK 350.8 million. In accordance with the calculation principles in the terms and conditions of the Bonds (including finance leases pre-IFRS), the EBITDA for the twelve-month period ending 30 September 2022 amounted to SEK 79.7 million and the net interest-bearing debt amounted to SEK 326.4 million. The figures have neither been audited nor reviewed by the Company's auditor. Final outcome for the above items for the third quarter of 2022 may differ from the preliminary financial information now provided. The Company's reviewed Q3 2022 report will be published 30 November 2022.


The Company has appointed Pareto Securities to act as advisor in connection with the Written Procedure. Gernandt & Danielsson Advokatbyrå has been appointed as legal counsel to SEM.

For further information, please contact the Company:

Christina Hallin, CEO

[email protected]

+46 70 821 11 89

This information is information that the Company is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 11 November 2022, at 19:45 CET.

 

 

^[1] Including non-current (SEK 28.0 million) and current (SEK 14.1 million) lease liabilities, SEK 335.9 million bond loan and SEK 2.4 million utilised credit facility.
^[2] Including a negative cash adjustment of SEK 2.3 million relating to cash transferred to a separate account to be transferred to a third party.
^[3] Net debt is calculated by reducing gross debt with cash and cash equivalents.



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