Software group Solteq says that it will initiate a written procedure to change the terms of the EUR 23 million fixed-rate unsecured senior conditional bond due in 2024.
“The terms of the bond limit Solteq’s ability to raise or acquire a new working capital loan and provide guarantees for such liabilities. Among other things, in order to ensure that Solteq’s financing has enough flexibility to manage a possible increased working capital need, Solteq is approaching the bondholders with a request to increase the maximum allowed amount of the working capital facility (Working Capital Facility) from 7 million euros to 10 million euros. The increase would be made possible by changing the definition of “Working Capital Facility” in the terms of the bond,” the company says.
As compensation, Solteq will offer bondholders who vote in favor of the request a premium of 1.0 percent of the nominal value of each bond held by the holder.
If the request is not accepted in the written procedure, the terms of the bond remain unchanged. The bond has been listed on the Nasdaq Helsinki stock exchange since October 5, 2020.