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RNB RETAIL AND BRANDS announces a fully underwritten share issue of approximately SEK 450 million, renegotiated debt financing with significantly reduced interest expenses, conducts strategic review of JC and enables business development efforts primarily in the business areas Departments & Stores and Polarn O. Pyret
- The Board of Directors of RNB RETAIL AND BRANDS has resolved to conduct a fully underwritten share issue of approximately SEK 450 million with preferential rights for existing shareholders in RNB RETAIL AND BRANDS.
- Existing shareholders representing 31 per cent of the share capital have undertaken to subscribe for shares in the rights issue. In addition, existing shareholders have undertaken to guarantee an amount corresponding to approximately 40 per cent of the rights issue, meaning that shareholders have granted subscription undertakings and guarantee undertakings in respect of approximately 71 per cent of the total rights issue. Additionally, guarantee undertakings have been received from an external consortium including Carnegie Investment Bank, making the rights issue fully underwritten.
- The proceeds will be used to i) strengthen the balance sheet through repayment of debt, ii) enable business development efforts, primarily within the business areas Polarn O. Pyret and Departments & Stores, and also iii) carry out further rationalisation of operational activities and a strategic review of JC.
- Renegotiated long-term debt financing structure, including substantially reduced interest expenses, has been secured until 2016, part of which can be extended to 2017. Annual interest expenses, which during the last twelve month period totalled SEK 62 million, are in the new loan structure expected to be approximately SEK 10 million.
- JC has been loss-making for a number of years, and despite several attempts, RNB has not succeeded to stop this negative profitability situation. RNB has therefore decided to write off the entire SEK 260 million book value of the JC trademark. RNB has also decided to conduct a strategic review of JC to examine the potential to quickly achieve a satisfactory level of profitability. This includes an evaluation of all possible alternatives.
- For Q2 2012/2013, operating profit before write-downs is expected to be in line with the same period last fiscal year. Announcement of the second quarter results for the fiscal year 2012/2013 will be moved forwards to 25 March 2013.
- The rights issue is subject to approval by the Extraordinary General Meeting, scheduled to be held on 27 March 2013. The subscription price and offer ratio are expected to be announced on 26 March 2013. Trading in subscription rights is expected to take place as from the 8 April 2013 up to and including 17 April 2013. The subscription period is expected to run from and including 8 April 2013 up to and including 22 April 2013.
- A conference call will be held today at 10.00 CET.
Conference call today at 10.00 CET
For further information, please contact:
Magnus Håkansson, CEO, RNB RETAIL AND BRANDS AB, 08-410 520 02, 0768 87 20 02, email: firstname.lastname@example.org
Stefan Danieli, CFO RNB RETAIL AND BRANDS, 08-410 522 25, 0768-87 22 25, email: email@example.com
RNB RETAIL AND BRANDS AB (publ) discloses the information provided here pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on February 22, 2013 07.00 CET.
RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing, accessories, jewelry and cosmetics stores that focus on providing excellent service and a world-class shopping experience. Sales are mainly conducted in Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn O. Pyret, as well as through shops in the department stores NK in Stockholm and Gothenburg. RNB RETAIL AND BRANDS has operation in 11 countries. RNB RETAIL AND BRANDS has been listed on the OMX Nordic Exchange since 2001.
In certain jurisdictions, the publication or distribution of this press release may be subject to legal restrictions. This press release may not be published or distributed in or into any jurisdiction where such action, wholly or partly, is subject to legal restrictions. The information contained in this press release may neither be forwarded, reproduced nor displayed in any manner in violation with such legal restrictions.
This press release does not contain or constitute an invitation or an offer to acquire, subscribe for or otherwise trade in subscription rights, BTAs (interim shares), shares or other securities issued by RNB Retail and Brands AB (publ). Any invitation to the persons concerned to subscribe for shares in RNB Retail and Brands AB (publ) will only be made through the prospectus RNB Retail and Brands AB (publ) expects to be able to publish in April 2013.
The rights issue is not intended for the public in or shareholders resident in the United States, New Zealand, Australia, Hong Kong, Japan, Canada, Singapore or South Africa or any other jurisdiction where such persons participation is subject to any prospectus, registration or any other requirement than those applicable pursuant to Swedish law, or would violate applicable law or regulation in such jurisdiction. The subscription rights, the BTAs (interim shares) or the new shares relating to the rights issue have not been and will not be registered in accordance with United States Securities Act of 1933 (as amended), any United
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Source: RNB Retail and Brands AB via Thomson Reuters ONE