2013-08-23 13:36:03 -
Sandvika, August 23, 2013: Renewable Energy Corporation ASA (REC) has decided to
improve the contemplated conditional re-purchase offer of senior bonds.
REC has for some time been in the process of restructuring and refinancing the
group in order to obtain a better capital structure with reduced debt, lower
interest costs and prolonged maturities. The bond and equity transactions
undertaken over the last months have all been steps towards this goal.
Since the peak in 2010, net debt has been reduced by NOK 9.4 billion to NOK 2.2
billion at the end of the second quarter 2013. Annual interest payments are down
from NOK 900 million per year in 2010 to approximately NOK 300 million in 2013.
With the partial buy back of the 2014 convertible bond and the new
million 2018 convertible bond announced on August 12, 2013, REC has further
prolonged debt maturities.
The next step in the restructuring and refinancing process is the proposed split
of REC and the repurchase of senior bonds. To gain further support from the
bondholders for the proposed split, the senior bond repurchase offer is amended
as set out below and in the attached presentation.
These transactions will reduce net debt of REC from NOK 2.2 billion to
approximately NOK 1.7 billion and the 2014 interest payments will be reduced to
approximately NOK 100 million.
After these transactions, the remaining 2014 debt maturity is approximately NOK
635 million. This will be addressed through either one or more of available
cash, cash flow from operations, issuing of new bonds, a bank credit facility,
sale of non-core assets, or raising new equity.
Improved conditional repurchase offer of senior bonds
A bondholders' meeting for the REC01, REC02 and REC03 bonds will be held on
August 27, 2013, and the bondholders will vote on the proposed split of the
The bond repurchase offer set out below will only be put forward if the proposed
split of REC is completed as outlined in the Company's announcements on July
18, 2013 and on August 12, 2013.
REC is amending the repurchase offer of senior bonds as set out below (previous
offer specified in brackets, all other terms and conditions unchanged).
i. REC01: Redemption of up to 100% (up from 60%) of the principal value at
103% of par
ii. REC02: Redemption of up to 67% (up from 40%) of the principal value at par
iii. REC03: Redemption of up to 67% (up from 40%) of the principal value at par
As described in the REC ASA's press release on July 18, 2013, the completion of
the contemplated separation of the Company's Silicon and Solar divisions is
conditional upon approvals by (i) the extraordinary general meeting of the
Company and (ii) the bondholders' meetings in REC01, REC02 and REC03.
REC Silicon - impact of polysilicon import duties
On July 18, 2013, China announced introduction of preliminary anti-dumping
duties of up to 57 percent on polysilicon produced in the US. China has signaled
that a final determination is scheduled for early 2014.
There is engagement between the relevant parties in the US and China to resolve
the trade dispute and we are hopeful that an agreement will be reached.
REC is in close dialogue with all of its customers and volumes continue to be
shipped at expected levels. REC's polysilicon production facilities continue to
operate at full capacity.
For further information, please contact:
SVP Investor Relations & Business Development, REC
Telephone: +47 976 99 144
This press release does not constitute or form part of an offer or solicitation
to sell, purchase or subscribe for securities in the United States. The
securities referred to herein may not be offered or sold in the United States
absent registration or an exemption from registration as provided in the U.S.
Securities Act of 1933, as amended. The Company does not intend to register any
portion of the offering of any securities in the United States or to conduct a
public offering of any securities in the United States. Copies of this
announcement are not being made and may not be distributed or sent into the
Australia, Canada, Japan or the United States.
Certain statements contained herein that are not statements of historical fact,
may constitute forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that could cause the
actual results or events concerning the Company to be materially different from
the historical results or from any future results expressed or implied by such
forward-looking statements. Although the Company has attempted to identify
important factors that could cause actual events or results to differ from those
described in forward-looking statements contained herein, there can be no
assurance that the forward-looking statements will prove to be accurate as
actual future events could differ materially from those anticipated in such
statements. Except as may be required by applicable law or stock exchange
regulation, the Company undertakes no obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or
circumstances after the date of this release or to reflect the occurrence of
REC is a leading global provider of solar electricity solutions. With nearly two
decades of expertise, we offer sustainable, high-performing products, services
and investment opportunities for the solar and electronics industries. Together
with our partners, we create value by providing solutions that better meet the
world's growing electricity needs. Our 2,200 employees worldwide generated
revenues of more than NOK 7 billion in 2012, approximately EUR 1 billion or USD
To see more of what REC can offer, visit www.recgroup.com
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Amended bond refinancing:
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originality of the information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE