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DDM Holding AG
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DDM Debt AB
DDM Debt to initiate a written procedure for its up to EUR 160m bond loan with ISIN: SE0010636746 tomorrow and communicates support received
DDM Debt AB (Nasdaq Stockholm: DDM2) ("DDM Debt") today announces that it will initiate a written procedure under the terms and conditions of its up to EUR 160,000,000 senior secured bonds due 2020 (ISIN SE0010636746) (the "Bonds") (the "Bondholders") tomorrow, 7 July 2020.
The current COVID-19 pandemic and the containment measures implemented by governments to limit the spread of the virus have negatively impacted global economic activity and are likely to have a negative impact on the DDM Debt Group’s financial performance. In response to the new market environment, DDM Debt has undertaken cost saving measures across the DDM Holding Group, including the DDM Debt Group. The COVID-19 outbreak has also impacted the capital markets in general, and particularly the credit markets.
Due to the extraordinary situation and uncertainties in the credit markets, it is deemed challenging to refinance the Bonds in the capital market at this point in time. DDM Debt will therefore in the written procedure request, among other things, that the final redemption date of the Bonds, which currently occurs on 11 December 2020, is extended by twelve months and in connection therewith, the call option amounts and call periods for DDM Debt's call option right will be amended, an obligation to cancel EUR 5m of Bonds and a mandatory partial redemption structure will be incorporated which will set the outstanding nominal amount to be redeemed on the new final maturity date at EUR 28m and the redemption amount on the new final maturity date will be set at 105 per cent., each as specified in the attached notice of Written Procedure (the "Proposals"). Other than the Proposals, DDM Debt proposes that the existing covenants for the Bonds remain in place.
Bondholders holding more than fifty (50) per cent. of the Bonds have expressed their support to DDM Debt to vote in favour of the Proposals.
Voting in relation to the Proposals will be made through a written procedure (the "Written Procedure"). In order for the Proposals to be passed in the Written Procedure a quorum of at least fifty (50) per cent. of the adjusted nominal amount must be reached and a majority of at least two thirds (2/3) of the adjusted nominal amount for which Bondholders reply in the Written Procedure must vote in favour of the Proposals.
Intertrust (Sweden) AB will send the notice of Written Procedure, including the Proposals, to the Bondholders on 7 July 2020. If the Proposals are approved by the Bondholders, a consent fee amounting to EUR 1,000 per Bond (the "Consent Fee") will be paid by DDM Debt to the eligible Bondholders.
The Written Procedure will formally commence on 13 July 2020 and end on 14 August 2020. To be eligible to participate in the Written Procedure a person must fulfil the formal criteria for being a Bondholder on 13 July 2020. This means that the person must be registered on a securities account with Euroclear Sweden AB as a direct registered owner (Sw. direktregistrerad ägare) or an authorised nominee (Sw. förvaltare) with respect to one or several Bonds.
The last time and day to vote is 17.00 (CEST) on 14 August 2020.
For further information about the Proposals and the Written Procedure, please see the attached notice of Written Procedure.