- The issue will pay interest at a fixed rate of 7.25% and will be redeemed in full in 2020.
- The placement had support from international investors, the demand of which exceeded the securities offer by 4 times.
- In addition, the company has reached an agreement with benchmark international and Spanish financial institutions to obtaining a credit facility for 90 million euros.
- The transaction reinforces the company’s solid financial position which is characterised by high liquidity and a low leverage ratio.
28 January 2013.- Ence Energía y Celulosa successfully set the price of its bond issue on the international capital market for an amount of 250 million euros. The issue, which is aimed at qualified international investors, will pay interest annually at a fixed rate of 7.25% and will be redeemed in full in 2020.
The issue will foreseeably be closed and paid around 1 February 2013, subject to the compliance of the conditions precedents that are typical for these types of issues.
It should also be noted that in addition to the bond issue, Ence has reached an agreement with benchmark international and Spanish financial institutions to obtaining a credit facility amounting to 90 million euros.
Following the meetings held with investors, Ignacio Colmenares, Ence CEO, affirmed that “the bond issue was well received by the financial community as shown by the strong demand for securities we’ve seen, which exceeded our initial offer by 4 times”.
Ignacio Colmenares went on to say that “with this transaction, we were able to achieve the goal of diversifying and internationalising Ence’s sources of financing. In addition, the issue will allow us to repay the existing corporate bank debt, thereby expanding its maturity profile, optimising the structure of the resources and increasing the company’s financial flexibility”.
Ence Energía y Celulosa is the leading company in Spain in using forest biomass for the production of renewable energy and has an installed capacity for the generation of electricity of 280 MW. In addition, Ence, which exports almost 90% of its output, is the leading company in Europe and the fourth worldwide in the manufacturing of eucalyptus pulp. With a market share of more than 15%, Ence is the second largest company in eucalyptus pulp sales in Europe.
This announcement is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration. The Company does not intend to register any portion of this offering in the United States or to conduct a public offering in the United States or any other jurisdiction. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the Company and its management, as well as financial statements. Copies of this announcement are not being, and should not be, distributed in or sent into the United States.
It may be unlawful to distribute this announcement in certain jurisdictions. This announcement is not for distribution in the United States, Japan or Australia. The information in this announcement does not constitute an offer of securities for sale in the United States, Canada, Japan or Australia.
In member states of the EEA, this announcement and any offer of securities if made subsequently is directed only at persons who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (“Qualified Investors”). Any person in the EEA who acquires securities in any offer of securities (an “investor”) or to whom any offer of securities is made will be deemed to have represented and agreed that it is a Qualified Investor. Any investor will also be deemed to have represented and agreed that any securities acquired by it in the offer have not been acquired on behalf of persons in the EEA other than Qualified Investors or persons in the UK and other Member States (where equivalent legislation exists) for whom the investor has authority to make decisions on a wholly discretionary basis, nor have the securities been acquired with a view to their offer or resale in the EEA to persons where this would result in a requirement for publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Directive. The Company and others will rely upon the truth and accuracy of the foregoing representations and agreements.
This communication is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) the high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.
