Automotive company Paragon is backing the second AGV variant rollout on March 10: Coupon increase and partial payment planned.
Paragon GmbH & Co. accepted KGaA offers from February 28 Blue Protect Consulting & Investment UG .’s Countermeasures Action Regarding the upcoming rollover of the bond 4.50% 2017/22 (DE000.00) A2GSB8 6) It is welcomed in spite of the large additional workload that accompanies the company.
In particular, the application contains a file Increase the interest rate from the current 4.5 to 6.25%, which should then be paid not annually, but semi-annually. This interest rate is set to decrease gradually in the future, depending on the reduction in the company’s leverage target.
On certain dates in 2023, 2025 and 2026, Paragon will have to make early partial payments totaling €25 million. The Swiss bond repayment date of April 23, 2023 has been proposed as the first date.
Also potential sales revenue in the context of sales of business units It must be used for partial repayment of Eurobondswhich must be compensated for the mandatory partial payment.
Moreover, the dividend policy should be tightened with a significant restriction of potential dividends to only 20% of the balance sheet earnings.
“In intense and constructive discussions with bond investors, a method for extension modalities has emerged, which is expressed in the current counter-movement. We welcome this proposal as it represents a still workable compromise between the demands of bondholders and the concerns of the company that can be satisfied or dissatisfied with all parties. concerned”. Claus-Dieter Frears, CEO of Paragon, explains.
The application can be accessed through the following link on the home page of the example: https://ir.paragon.ag/websites/paragon/German/3400/anleiheglaeubigerabstimung.html
As previously announced Paragon CEO Klaus Frears will be on a webcast on March 3rd from 5pm Inform him of the current status of the talks and the settlement proposal now available. The webcast can be accessed via the following link: https://www.webcast-eqs.com/register/paragon20220303/de