GN Store Nord A/S announces plan to strengthen its capital structure to execute growth opportunities including a directed issue and private placing of a total of approximately 17 million shares

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GN Store Nord A/S announces plan to strengthen its capital structure to execute growth opportunities including a directed issue and private placing of a total of approximately 17 million shares

The new capital plan aims to strike the right balance between current market challenges and future significant growth opportunities, allowing GN to execute on both short- and long-term market share opportunities.

As a key pillar of the plan, GN Store Nord A/S ("GN") today launches an offering of shares at market price via a directed issue and private placing (the “Placing”). The Placing will be conducted through an accelerated book-building process and will consist of up to a total of 17,319,337 shares (nominally DKK 69,277,348) of DKK 4.00 each comprising up to 13,719,337 new shares (nominally DKK 54,877,348) (the “New Shares”) and up to 3,600,000 existing treasury shares (nominally DKK 14,400,000) (the “Treasury Shares”) (together with the New Shares, the “Shares”).

Background for the Placing

In October 2021, GN announced the DKK 8 billion debt-financed acquisition of SteelSeries, a global pioneer in premium software-enabled gaming gear. In light of the significant changes in the macroeconomic environment and GN’s leverage, GN has developed a new capital plan to prepare for repayment of approximately DKK 7 billion debt that matures in 2024. The pillars are:

• Cash at hand and positive Free Cash Flow excl. M&A for 2023 and 2024 at Group level
• DKK 1.0 – 2.0 billion via disposals of selected assets
• DKK 2.1 billion new debt (EUR 280 million) via debt refinancing, replacing the existing EUR 520 million term loan expiring in 2025 with a new EUR 800 million term loan facility expiring in 2026 (term sheet signed; finalization of the loan subject to final agreement on customary long form documentation and completion of the Placing)
• An accelerated bookbuild offering of New and Treasury Shares up to 17,319,337 shares

Moreover, GN still has immediate access to an undrawn revolving credit facility of EUR 350 million maturing in 2027.