paragon AG issues corporate bond

paragon AG / Key word(s): Bond 13.06.2013 19:57 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Delbrück, Germany, June 13, 2013 - The Managing Board of paragon AG (ticker symbol PGN, WKN (stock) 555869, ISIN (stock) DE0005558696) resolved today, upon approval by the Supervisory Board, to issue a corporate bond in a volume of up to EUR20 million. The bond will bear interest at a fixed annual coupon of 7.25 per cent and has a term of 5 years. It is expected to be offered for subscription in the period from June 25, 2013 to June 28, 2013 (12.00 am), with a nominal amount of EUR1,000 each. paragon AG has a BB+ rating from Creditreform. The proceeds from the issue will be used for further internationalization, investments in the Electromobility and Kinematics divisions, expanding production at the St. Georgen site, for acquisitions and repayment of loans, and as liquidity reserve. Explanatory Notes: The bond will be issued to the public in Germany, Austria and Luxembourg. Retail investors may subscribe to bonds through their principal bank or custodian. Institutional investors may subscribe through Close Brothers Seydler Bank AG, the Sole Global Coordinator and Bookrunner. The public offer will be terminated early if oversubscribed. The bonds are expected to be included in the Open Market (Freiverkehr) of Deutsche Börse AG on July 2, 2013 and listed simultaneously in the Entry Standard for corporate bonds. Portrait Listed in the Prime Standard segment of the German Stock Exchange in Frankfurt, paragon AG develops, produces and markets innovative solutions in the field of automotive electronics. The portfolio of the direct supplier to the automotive industry includes products in the business segments sensors, acoustics, cockpit, electromobility and body works kinematics. An outstanding product is the air quality sensor AQS, which is by far the world market leader. In addition to its headquarters in Delbrück (North Rhine-Westfalia), paragon maintains branches in Suhl (Thuringia), Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg) and a sales office in Shanghai (China). Contact paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +49 (0) 52 50 - 97 62-0 Fax: +49 (0) 52 50 - 97 62-60 Internet: www.paragon.ag E-Mail: info@paragon.ag Press officer Matthias Hack Tel.: +49 (0) 52 50 - 97 62-141 Mobile: +49 (0) 162 1010724 Fax: +49 (0) 52 50 - 97 62-60 E-Mail: matthias.hack@paragon.ag Contact for financial press / investor relations Stockheim Media GmbH Michael Knecht Tel.: +49 (0) 89 - 200 315 73 Fax: +49 (0) 89 - 813 030 23 E-Mail: mk@stockheim-media.com Disclaimer: This Ad-hoc disclosure does not constitute an offer to sell or an invitation to make an offer to buy or subscribe for securities of paragon AG and does not substitute a securities prospectus. There will be no public offer of securities outside of the Federal Republic of Germany, the Grand Dutchy of Luxembourg and the Republic of Austria and such offer is not intended . The public offer in the Federal Republic of Germany, the Grand Dutchy of Luxembourg and the Republic of Austria will be made exclusively on the basis of the securities prospectus, which has to be approved by the Commission de Surveillance du Secteur Financier (the 'CSSF') and will be notified to the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleitungsaufsicht - the 'BaFin') and the austrian financial market supervisory authority (Finanzmarktaufsicht - the 'FMA'). The prospectus will be made available on the website of the company under www.paragon.ag (category bond), on the website of the CSSF under www.bourse.lu and under the address of the company (Schwalbenweg 29, 33129 Delbrück) immediately after its approval and will be the solely relevant document for the public offer of the notes. A decision to invest in the respective notes of paragon AG shall solely be made on the basis of the approved prospectus. This document and the information contained therein may not be distributed direct or indirect in or within the United States of America , Canada , Australia or Japan or other jurisdictions, in which such offer, respectively, such invitation to make an offer to buy or subscribe for securities is not allowed. Any violation of such limitations may constitute a breach of securities regulations of such countries. This document includes 'forward-looking statements'. Forward-looking statements are all statements, which do not describe facts of the past, but containing the words 'believe', 'estimate', 'expect', 'anticipate', 'assume', 'plan', 'intend', 'could', and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of paragon AG, which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of paragon AG. The actual financial position and the actual results of paragon AG, as well as the overall economic development and the regulatory environment may differ materially from the expectations, which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Therefore, investors are warned to base their investment decisions with respect to paragon AG on the forward-looking statements mentioned in this document. 13.06.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: paragon AG Schwalbenweg 29 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 WKN: 555869 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------