NewsDiamorph AB (publ) to redeem its outstanding bonds in their entirety

Redemption of bonds

Diamorph AB (publ) (the “ Company ”) has given notice that it is exercising its option for early voluntary redemption in full of the Company’s maximum SEK 800 million senior secured callable fixed rate bonds 2014/2019 with ISIN SE0006028221 (the “ Bonds ”), and has given notice of this to all holders of the Bonds.

The date on which the redemption of the Bonds will occur will be 5 September 2017. The total outstanding amount of the Bonds is SEK 450 ,000,000 . All Bonds will be redeemed at an amount equivalent to 103.00 per cent of the Bonds nominal amount together with accrued but unpaid interest from but excluding the preceding interest payment date up to and including the redemption date 5 September 2017.

The payment of the redemption amount will be disbursed to Bondholders who on the record date, which will be 29 August 2017, are registered as owners of the Bonds in the debt ledger produced by Euroclear Sweden AB.

In connection with the early voluntary redemption, the Bonds will be delisted from the corporate bond list at Nasdaq Stockholm.

This notice of early voluntary redemption is irrevocable and is governed by Swedish law.

The complete notice to the holders of the Bonds is published on the Company’s website.

New bank facility

The Bonds will be redeemed using a combination of existing surplus cash accumulated within the group as well as from proceeds drawn down through a new senior secured bank facility arranged with Nordea Bank AB (“ Nordea ”). The Nordea facility comprises a US$5.7 million 3 year amortising term loan and €36 million revolving credit facility, giving an initial total facility of approximately 392 MSEK.

The revolving credit facility is for an initial term of 3 years (with further extensions of up to 2 years possible under certain conditions) and it can be drawn in a combination of SEK, EUR, USD and GBP currencies. Interest on the borrowings will be based on a margin above floating interest rates, where the margin is linked to the group’s leverage position.

The Company expects to derive a number of benefits from this refinancing including:

  • A reduction in financing costs. Depending on future movements in market interest rates, after taking account of transaction costs (including bank arrangement fees, legal fees and SEK 13.5 million early redemption fee payable to Bondholders), the payback period is expected to be approximately one year;
  • Improved flexibility to efficiently manage the surplus cash generated by the group; and
  • The opportunity to better manage the currency exposures in the business since much of the group’s net operating income is derived in EUR and USD.

The completion of this refinancing transaction represents an important further step in the strategic development of Diamorph.

For additional information, please contact:
Mark Hutchison, CFO
Tel: +44 7930 118555
E-mail: Mark.Hutchison@tenmat.com