As announced in the Q3 2013 earnings release, Telio is working on a financial debt restructuring. The company will today issue summons to a bondholders' meeting to be held on 5 February 2014 in order to ask for early redemption of the bond (see attachment).

The company has agreed on amended loan facilities with Nordea. The new financing comprises a five year term loan of NOK 250 million and a NOK 75 million overdraft facility. The offered call price of 108.50% of par value to bondholders implies an extra cost of NOK 25.5 million for the company. This one-off cost will be fully offset by lower financial expenses within approximately 24 months and the new financing reduces financial expenses by approximately 60% over the loan term. Altogether, this financial restructuring including less strict financial covenants make it possible for Telio to pay dividend already in 2014 based on the 2013 annual accounts. This is subject to 2/3 of the bondholders attending the bondholders' meeting voting in favor of an early redemption of the bond. Further details regarding the loan facilities, covenants and dividend outlook will be provided at the company's Q4 2013 earnings release on 11 February 2014.

  • NO0010674542 SB 20140122 (NO0010674542_SB_20140122.PDF)
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