HANZA Refinances Credit Agreements

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The majority of HANZA Holding AB's convertible loan of SEK 10 million and shareholder loan of about SEK 12 million (with term on 31 December 2015), are now refinanced, with the company taking up a new convertible loan of SEK 15 million with maturity on 31 December 2017 and selling 437,630 shares in HANZA that are owned by subsidiary HANZA Tvärbyssan AB. The purchase price is SEK 8 per share, which corresponds to a total of about SEK 3.5 million.

Subscribers of the convertible loan and the buyer of the shares are Gerald Engström, both privately and through the company Färna Invest AB, controlled by Gerald Engström. Gerald Engstöm is founder and owner of Systemair AB.

"It is pleasing that HANZA attracts professional investors with broad industrial expertise," comments Erik Stenfors, CEO of HANZA.

Sales of the company's shares does not affect the registered number of shares in the company or the company's share capital. However,  the company no longer own shares previously deducted in earnings per share and equity per share. Since company owned shares are not valued in the balance sheet, the transaction results in an increase of equity of SEK 3.5 million.

"It is a good solution for the previous credit agreements," says Lars Åkerblom, CFO of HANZA Group. "Through the refinancing, we simplify our credit structure and reduce interest expenses."

The decision to issue the convertible loan was made by the Board of Directors with the authority granted by the Extraordinary General shareholder's Meeting on July 30, 2015. The holder is entitled to convert the loan into shares in the company in December 2017. Furthermore, in certain specific circumstances the holder have the right to request conversion earlier. The conversion rate is 85% of the average of the market price of the company share during the three months immediately preceding and notice of conversion, however not less than SEK 5.80.



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