DGAP-News: paragon GmbH & Co. KGaA / Key word(s): Bond
01.03.2022 / 14:54
The issuer is solely responsible for the content of this announcement.

paragon welcomes investor proposal for higher coupon and more flexible bond redemption

Delbrück, 1 March 2022 - paragon GmbH & Co. KGaA has reviewed the suggestions from the counterproposal received on 28 February 2022 from the bondholder blue Protect Consulting & Investment UG regarding the upcoming extension of the 4.50% bond 2017/2022 (ISIN: DE000A2GSB86 / WKN: A2GSB8) and welcomes this proposal, despite the significant additional burdens it places on the company.

- Specifically, the proposal includes an increase of the interest rate from currently 4.5% to 6.25%, which will then no longer be paid annually but semi-annually. This interest rate is to decrease gradually in the future, depending on the company's targeted reduction in the debt ratio.

- On certain dates in 2023, 2025 and 2026, paragon will be obliged to make early partial repayments totaling EUR 25 million. The first proposed date is the repayment date of the Swiss bond on 23 April 2023.

- It is also proposed that any proceeds from the sale of business units must be used for partial repayments of the EUR bond, which will be credited against the mandatory partial repayments.

- Furthermore, the dividend policy is to be tightened with a clear limitation of possible distributions to only 20% of the balance sheet profit.

"In the close and constructive discussions with the bond investors, a way forward for the terms of the extension has emerged, which is expressed in the present counterproposal. We welcome this proposal, as it represents a feasible compromise between the demands of the bondholders and the interests of the company, one that leaves all parties equally satisfied or dissatisfied," said paragon CEO Klaus Dieter Frers.

The proposal can be downloaded from the paragon homepage at the following link:


As previously announced, paragon CEO Klaus Frers will provide information on the current status of the talks and the compromise agreement in a webcast on 3 March from 5 p.m. The webcast can be accessed via the following link:


Profile: paragon GmbH & Co. KGaA

paragon GmbH & Co. KGaA (ISIN DE0005558696), which is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange, develops, produces and distributes forward-looking solutions in the field of automotive electronics, body kinematics and e-mobility. As a market-leading direct supplier to the automotive industry, the company's portfolio includes the Electronics operating segment's innovative air-quality management, state-of-the-art display systems and connectivity solutions, and high-end acoustic systems. In the Mechanics operating segment, paragon develops and produces active mobile aerodynamic systems. In the rapidly growing automotive market for battery systems, paragon now acts independently with the Business Unit Power after the sale of the Voltabox share.

In addition to the company headquarters in Delbrück (North Rhine-Westphalia, Germany), paragon GmbH & Co. KGaA and its subsidiaries operate sites in Suhl (Thuringia, Germany), Landsberg am Lech, Nuremberg (Bavaria, Germany), St. Georgen (Baden-Württemberg, Germany), Limbach (Saarland, Germany) as well as in Kunshan (China), Bangalore (India) and Oroslavje (Croatia).

Additional information about paragon can be found at www.paragon.ag.


Capital Market & Press Contact

paragon GmbH & Co. KGaA

Mirko Wollrab
M: +49 172 830 3600
mailto: mirko.wollrab@corecoms.de
Corecoms Consulting GmbH & Co. KG
Goethestraße 29
60313 Frankfurt am Main

01.03.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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