SSH wants to buy back its hybrid bonds

Information security company SSH Communications Security announces that it is making a voluntary buyback offer for its hybrid bond.

It is initially a loan of 12 million euros with an interest rate of 7.50 percent.

SSH proposes to buy back loan shares for a total cash consideration of no more than 6 million euros.

Matali’s possible buyback price for the loan unit is EUR 1,200 per loan unit. Offerors who buy loan shares can ask for a higher price.

Hybrid loans are a way to obtain financing. The company cannot usually pay a dividend until the interest on the hybrid loan has been paid, but in a bankruptcy situation other creditors are ahead of the hybrid loan issuers.