DGAP-News

Schaltbau Holding AG: Mandatory Convertible Bond for EUR 60 million fully placed as planned - Seite 2

"We intend to increasingly apply our high level of technological expertise in the manufacturing of DC components and applications in new markets, too," said Dr Jürgen Brandes, CEO of Schaltbau Holding AG. "The construction of the NExT Factory in Velden, Germany, is a key prerequisite for entering these new markets. The full placement of the bond secures the financing we need to stay on track for growth. We are therefore very happy to have received the broad support of our shareholders."

Mandatory Convertible Bond with short-term maturity to bolster equity

The bond, which bears interest at 0.5%, matures on 30 September 2022 and can be converted at an initial price of EUR 29 per share into a total of up to 2,068,965 shares in the Company at any time for amounts above EUR 100,000 and quarterly for amounts below EUR 100,000, commencing on 12 May 2021. As all the bonds will be converted into Schaltbau shares by the final maturity date, Schaltbau Holding AG is simultaneously strengthening its equity base with the issue.

The majority (approx. 50-60%) of the net issue proceeds of around EUR 57.4 million will be used to finance the construction of a production plant in Velden ("NExT Factory"). With this move, Schaltbau intends to drive its strategic expansion into new markets such as New Energy, New Industry and E-Mobility.

The funds will also be used selectively to finance minor acquisitions in the areas of rolling stock and rail infrastructure in order to round off the Group's product portfolio and underpin profitable growth in these business areas (approx. 15-20%). Moreover, Schaltbau intends to repay bank liabilities in order to further reduce its net debt and thus provide greater flexibility for making strategic investments (approx. 25-30%).

Existing shareholders and investor groups display great confidence in Strategy 2023

"The full placement reflects the confidence of both our existing shareholders and the investor groups with whom we entered into the pre-placement agreement at the beginning of March in our overall strategic orientation and our future potential for growth," said Steffen Munz, CFO of Schaltbau Holding AG. "We greatly appreciate the trust these stakeholders have placed in us. One of our primary aims is to boost our financial performance, which also means we will deploy the funds we have now raised in a highly disciplined manner to implement our growth strategy."