(Drammen, 8 April 2013) Eltek ASA has today informed the bond trustee Norsk Tillitsmann ASA that the company will call its FRN Eltek ASA Senior Unsecured Callable Bond Issue 2010/2015 - ISIN NO 001 0571144 at 102% of par value. Redemption of the whole NOK 200 million issue will take place within 30 business days.
The bond will be refinanced by amendments to existing facility agreements with Nordea. The amendments include an increase of the five-year revolving facility with maturity in September 2016 by EUR 26.6 million, and extension of maturity for a NOK 400 million revolving overdraft facility from September 2013 to September 2015.
The refinancing implies a slightly higher future grid price for the facilities, with margins varying with the leverage ratio (gross interest bearing debt/EBITDA). Overall financing costs will be reduced due to redemption of the bond loan.
This refinancing further improves the financial flexibility of the company. No additional collateral is required for the new credit facilities, and unchanged loan covenants leave ample financial headroom.
For further information, please contact:
Acting CFO Mark Baker: +44 787 943 2022
About Eltek ASA:
Eltek is a strategic technology partner within power solutions. The Company reported revenue of NOK 3.5 billion in 2012, and has approximately 2,500 employees and operations in almost 40 countries. The company focuses on power electronics markets, where the company is one of the leaders in telecom power and a growing force within industrial applications. Eltek also holds growth opportunities within solar power, e-vehicles, and datacenters. Eltek is listed on Oslo Stock Exchange and headquartered in Drammen, Norway.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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Source: Eltek ASA via Thomson Reuters ONE