Latecoere Announces the Launch of the Share Capital Increase Planned in Its Conciliation Protocol for an Amount of Approximately €108.2 Million, Which May Be Extended to Approximately €124.4 Million...

Regulatory News:

Latecoere Announces the Launch of the Share Capital Increase Planned in Its Conciliation Protocol for an Amount of Approximately €108.2 Million, Which May Be Extended to Approximately €124.4 Million in the Event of the Exercise in Full of the Extension Clause

Not to be published, distributed or circulated directly or indirectly in the United States, Canada, Australia or Japan.

This press release is an advertisement and not a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017.

Latecoere (Paris:LAT) (the “Company”), a tier 1 provider to major international aircraft manufacturers, announces today the launch of a capital increase with preferential subscription rights for an amount of approximately €108.2 million, which may be extended to approximately €124.4 million in the event of exercise in full of the extension clause (the “Capital Increase”).

The Capital Increase is carried out in the context of the conciliation protocol concluded between the Company and its financial creditors on June 9^th, 2023 and approved in connection with a conciliation procedure by the Toulouse Commercial Court by judgment dated June 16^th, 2023 (the “Conciliation Protocol”) aiming to provide Latecoere with a solid capital structure to continue supporting its customers through the aircraft industry ramp-up currently anticipated for 2023 and beyond.

The proceeds of the Capital Increase will be used, among other things, to (i) repay, by way of compensation, the bridge loan granted to the Company on May 15^th, 2023 by the company SCP SKN Holding I SAS for a total amount of approximately €47.3 million including the issue premium amount and interests owed by the Company in the context of the bridge loan granted on May 15^th, 2023, and (ii) finance the reconfiguration of the industrial footprint, started in 2022, notably in the United States (Gardena) and in France (Montredon), in order to enable further concentration of production in countries where costs are lowest and the achievement of increased economies of scale. These measures will improve the group's operating costs, allowing Latecoere to take better advantage of the ongoing recovery in the aviation industry and restore profitability over the coming years. This additional equity (including €44.1 million already received under the bridge loan), combined with the group's existing liquidity and other initiatives (Sales & Lease Back), provides the financing necessary to support the operational improvement program of Latecoere, as well as to cover current loss-making operations.