Rapala VMC Corporation Issues EUR 30 Million Hybrid Bond

Rapala VMC Corporation, Stock Exchange Release, November 22, 2023 at 7:00 p.m. EET

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Rapala VMC Corporation (”Rapala VMC”) issues hybrid capital securities in the aggregate amount of EUR 30 million (the ”Capital Securities”). The Capital Securities bear a fixed coupon interest of 12.500 per cent per annum until 29 November 2026 (the “Reset Date”) and, from the Reset Date, a floating interest rate as defined in the terms and conditions of the Capital Securities. The Capital Securities do not have a specified maturity date, but Rapala VMC is entitled to redeem the Capital Securities at their nominal amount on the Reset Date, and subsequently, on each interest payment date thereafter. The issue date for the Capital Securities will be 29 November 2023.

Rapala VMC’s largest shareholder, Viellard Migeon Et Compagnie Sa, has participated in the issue by subscribing for the Capital Securities in an amount of EUR 7.2 million.

"We are highly grateful for the broad interest from capital markets towards our hybrid bond. The oversubscribed transaction evidences the strong support from the investors and from the largest shareholder VMC. This transaction strengthens our financial position and maintains our excellent customer service in the challenging market environment. I also want to thank our staff for the dedication, great team spirit and unity,” says Lars Ollberg, President and Chief Executive Officer of Rapala VMC.

The Capital Securities are subordinated to the company's other debt obligations and treated as equity in Rapala VMC’s consolidated financial statements prepared in accordance with the IFRS. The Capital Securities do not confer to its holders the rights of a shareholder and do not dilute the holdings of the current shareholders.

The proceeds from the issue of the Capital Securities will be used for general corporate purposes, including supporting Rapala VMC’s balance sheet, cash balance and improving its financial flexibility amid challenging trading environment while implementing savings program in operating expenses and optimizing its inventories. The issuance of the Capital Securities will also diversify Rapala VMC´s financing sources to capital markets.