By Angela McDaniels
Tacoma, Wash., Feb. 5 - Suominen Corp. accepted subscriptions for €17.5 million of convertible hybrid bonds, according to company news releases.
The convertibles were offered to a limited group of investors and were oversubscribed. The subscription period ran from Jan. 31 through Tuesday, and payment is due by Friday.
Both principal and interest are convertible into the company's shares at a conversion price of €0.50 per share. The conversion price is a 4.17% premium to €0.48, the average volume-weighted share price during the three months prior to when the board proposed issuing the convertibles.
Suominen will use the proceeds to finance its purchase of Ahlstrom Corp.'s Brazilian nonwoven business operations. Ahlstrom, a fiber-based materials company based in Helsinki, backstopped the offering.
Suominen makes nonwovens and flexible packaging for use in consumer products. The company is based in Helsinki.
| Issuer: | Suominen Corp.
|
| Issue: | Convertible hybrid bond
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| Amount: | €17.5 million
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| Conversion price: | €0.50
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| Settlement date: | Feb. 10
|
| Stock listing: | Nasdaq OMX Helsinki Ltd.: SUY1V
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| Stock price: | €0.49 at close Feb. 5
|
| Market capitalization: | €121.49 million
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