Bong has completed the acquisition of its lending banks’ claims

Bong AB (publ) (“Bong” or the “Company”) has previously announced the agreement in principle made with the Company’s two main lending banks (the “Banks”) regarding repurchase of the Banks’ claims on Bong in order to significantly reduce and change the nature of Bong’s indebtedness (the “Transaction”). The Transaction included and was conditional upon the completion of a bond issue, conversion of the Company’s convertible bonds into equity and issues of shares and subscription warrants. Today, all conditions have been satisfied and the Transaction has been completed.

Below is a summary of the various steps in the Transaction and the effects thereof.

Acquisition of the bank facilities

Convertible bonds

Bond issue

Effects of the transactions

The completion of the Transaction has resulted in an increase of equity and a reduction of interest-bearing debt by approximately SEK 500m, whereby a reasonable balance between indebtedness and operating profit is achieved. An additional positive effect of the measures is that the interest costs are decreased with approximately SEK 10m per year as a result of the lower debt burden. If the directed share issues are subscribed for in full and full subscription of shares through exercise of the issued subscription warrants is made, an amount of approximately SEK 70m will be added to the equity of the Company.

About Bong

Bong is a leading provider of specialised packaging and envelope products in Europe, offering solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are packaging within retail and e-commerce and the envelope market within Eastern Europe. The Group has annual sales of approximately SEK 2.3 billion and about 1,685 employees in 16 countries. Bong has strong market positions in the majority of key markets in Europe, and the Group sees interesting possibilities for continued expansion and development. Bong is a public limited company whose stock is quoted on the Nasdaq Stockholm (Small Cap).

For further information contact Stéphane Hamelin, CEO, Bong AB.
Phone (switchboard) +46 44-20 70 00

Bong AB (publ) discloses the information in this press release pursuant to the Securities Markets Act. The information was provided for public release on 29 January 2016 at 4.45 pm CET.