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Cicor Group announces the terms and conditions for a proposed five-year non-interest-bearing mandatory convertible bond (MCB) in the amount of up to around CHF 60 million, fully guaranteed by One Equity Partners (OEP).
At the Extraordinary General Meeting of Cicor Technologies Ltd, Boudry, held on December 16, 2021, the creation of conditional capital for the issuance of a mandatory convertible bond was approved. The Company now plans to issue the mandatory convertible bond according to the following terms and conditions: On January 3, 2022, existing shareholders will receive one preferential subscription right per existing share to subscribe for parts of the mandatory convertible bond, which can be traded on the SIX Swiss Exchange from January 3 to January 11, 2022. 51 preferential subscription rights entitle the holder to subscribe for one bond with a nominal value of CHF 1,000 until 12 noon on January 13, 2022.
OEP has committed to Cicor to firmly underwrite the mandatory convertible bond to the extent that the preferential subscription rights of the other shareholders are not exercised. OEP will already acquire a stake in the issued mandatory convertible bond corresponding to its shareholding upon completion of the offer, but at least such a stake that ensures that the nominal amount of the mandatory convertible bond will amount to at least CHF 20 million upon completion. The Board of Directors will decide on the remaining issuance of bonds up to the total issue amount of approximately CHF 60 million to OEP within the next 12 months, during which time OEP has committed to the takeover, depending on the financing needs of the Company.
The net proceeds of the offering will increase Cicor's financial flexibility and strengthen its balance sheet in connection with future acquisitions.