EQS-News

paragon launches bond buyback programme

EQS-News: paragon GmbH & Co. KGaA / Key word(s): Bond paragon launches bond buyback programme 26.10.2023 / 16:01 CET/CEST The issuer is solely responsible for the content of this announcement. paragon launches bond buyback programme

 

• Partial redemption in accordance with current bond conditions
• Stock exchange repurchase of up to EUR 20.2 million total nominal amount
• Period from 6 November to 5 July 2025 at the latest

Delbrück | October 26, 2023 - paragon GmbH & Co. KGaA [ISIN DE0005558696] today published details of the bond buyback programme it has agreed. The direct supplier to automotive manufacturers will start on 6 November 2023 to repurchase on the stock exchange its bonds 2017/2027 (ISIN: DE000A2GSB86; WKN: A2GSB8) in an aggregate principal amount of up to EUR 20,211,000.00. The programme will run until 5 July 2025 at the latest.

When the EUR 50 million bond was rolled over in March 2022, paragon undertook to repay a total of EUR 25 million of the total nominal amount. An initial public repurchase offer of EUR 5 million was made in March 2023. The terms and conditions of the bond, which were amended in March 2022, give the company the option, in agreement with the creditors' representative, to repurchase the remaining approximately EUR 20 million through an on-exchange repurchase programme.

The repurchase will be carried out by an independent securities service provider. The latter has to observe the prohibition of market abuse (so-called "safe harbour regulations") with regard to the purchase price and purchase volume. This means that no more than 25% of the average daily turnover (20-day average) in the bonds may be purchased on the stock exchange on any one day. The Bonds will be repurchased on the regional stock exchanges in Stuttgart, Frankfurt and Tradegate Exchange.

paragon is entitled, but not obliged, to accept offers to purchase and may shorten or extend the period. It is not the primary objective of the buyback programme to further deleverage the company; in view of the low net debt ratio achieved, the company reserves the right to raise corresponding credit funds on the market to finance the buyback. paragon will report on the progress of the bond buyback programme on its website (https://paragon.ag) on an ongoing basis.