paragon GmbH & Co. KGaA / Key word(s): Bond
paragon joins new counterproposal of Hanseatische Investment GmbH

04.03.2022 / 17:50
The issuer is solely responsible for the content of this announcement.


paragon joins new counterproposal of Hanseatische Investment GmbH

Delbrück, 4 March 2022 - paragon GmbH & Co. KGaA has received another counterproposal from Hanseatische Investment GmbH for the structure of the prolongation of its euro bond to be voted on 10 March.

The bondholder's request regarding the upcoming extension of the 4.50% bond 2017/2022 (ISIN: DE000A2GSB86 / WKN: A2GSB8) has been thoroughly reviewed by paragon and, in the company's view, represents a painful but viable compromise.

- Specifically, the proposal includes an increase in the interest rate from the current 4.5% to 6.75%, which will then no longer be payable annually but semi-annually. This interest rate is to decrease gradually in the future depending on the company's targeted reduction of the gearing ratio (to 6.50% if the net gearing ratio falls to less than or equal to 4.0. The further steps are 6.25% if <=3.5; 5.50% if <=3.0 and 5.00% if <= 2.5).

- According to the proposal, early partial repayments totaling EUR 25 million are foreseen on certain dates in 2023, 2025 and 2026. The first date proposed is the redemption date of the Swiss bond on 23 April 2023.

- Any proceeds from the sale of business units will also be used for mandatory partial repayments of the EUR bond, which will be credited against the mandatory partial repayments.

- No dividends are possible during the term.

- In addition, a Chief Financial Officer is to be appointed.

- The company undertakes to convene a creditors' meeting of the creditors of the Swiss bond with the aim of extending the term of the bond. If this extension is not successful, paragon must prove the future financing through an IDW S6 expert opinion.

"We now have a reasonable proposal for the vote that can be supported by a majority of investors and the company. We are therefore looking forward to a lively participation, especially from private investors, at the meeting on 10 March. Because in the coming week, we will have to set the course for a successful future for paragon," said paragon CEO Klaus Dieter Frers.

As an expense allowance, each investor will receive a participation fee of 0.25% of their nominal capital or at least 25 euros.

The counterproposal of Hanseatische Investment GmbH and the current proxy form for the company's voting representative are available under the following link: https://ir.paragon.ag/websites/paragon/English/3400/bondholder-resolution.html



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



04.03.2022 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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Language: English
Company: paragon GmbH & Co. KGaA
Bösendamm 11
33129 Delbrück
Germany
Phone: +49 (0)5250 97 62 - 0
Fax: +49 (0)5250 97 62 - 60
E-mail: investor@paragon.ag
Internet: www.paragon.ag
ISIN: DE0005558696, DE000A2GSB86,
WKN: 555869, A2GSB8,
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1295289

 
End of News DGAP News Service

1295289  04.03.2022 

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