København, 2017-11-02 18:07 CET (GLOBE NEWSWIRE) --
Today, the board of directors Park Street Nordicom A/S (the “Company”) decided to exercise its authorisation - pursuant to articles 3.8 of the Company's articles of association - granted at the annual general meeting held on 27 April 2017 to complete a direct capital increase at market price through debt conversion against the issuance of class B share capital.
The direct capital increase by means of conversion of debt is a key step in the restructuring plan agreed with the creditors along with refinancing of mortgage and term debt, and was made to strengthen the Company's capital base.
The debt to be converted into class B-share capital consists partly of (i) a nominal amount (including accrued interest) of DKK 183,991,911.32 credit facilities (the "Credit Facilities") and partly of (ii) DKK 57,751,200.00 zero-coupon bonds (former convertible bonds) (the Zero-coupon Bonds"). The management of the Company has stated the market value of the Credit Facilities at DKK 183,991,911.32 corresponding to par value while the market value of the Zero-coupon Bonds is stated at DKK 18,064,857.60 corresponding to a rate of 31.30. The principles behind the company's valuation of the market value of the Credit Facilities and the Zero-coupon Bonds is supported by a Valuation Memo prepared by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab.
The new class B shares are subscribed at a market price of 6.555 corresponding to the average closing price for the Company's class A shares issued through VP Securities A/S and admitted to trading on NASDAQ Copenhagen for the latest 10 trading days prior to 2 November 2017.
Thus, the total capital increase is a nominal amount of DKK 30,824,831.00 class B shares subscribed for through debt conversion of a total nominal debt amount of DKK 241,707,111.32 having a total market value of DKK 202,056,768.92.
Park Street NordAc Sarl, a controlled subsidiary of Park Street Asset Management has subscribed for all the new class B shares in connection with the capital increase. The new class B shares are fully paid in by the conversion of the debt to Park Street NordAc Sarl into class B share capital.
After the subscription of the new class B shares Park Street Asset Management and Park Street NordAc Sarl will own 100% of the nominal class B share capital and 87.6% (and a corresponding percentage of the votes) of the total nominal share capital of the Company.
The new class B shares are unlisted shares that are non-negotiable instruments issued as share certificates in the name of the holder and recorded in the name of the holder in the Company's register of shareholders. In addition to this, the class B shares will have the same rights in the Company as the Company's class A shares issued through VP Securities A/S and admitted to trading on NASDAQ Copenhagen.
After the issue, the Company's total share capital will be a nominal amount of DKK 42,852,689.00, divided into class A shares of a nominal amount of DKK 12,027,858 and class B shares of a nominal amount of DKK 30,824,831.00.
The increase of the class B share capital by means of conversion of debt is an integral step in restructuring plan described at the annual general meeting held on 27 April 2017 and the latest annual report of the Company and is in line with the EBVAT expectations for 2017 outlined in the Company's company announcement dated 31 August 2017. An outline of key updates on restructuring and operations is attached.
Pradeep Pattem, CEO of Park Street Nordicom A/S commented “This is a major milestone for Park Street Nordicom which was only possible with the strong support and efforts from our major banking partners. We are also excited to initiate the strategic partnership with LEA at this stage of the company allowing the Park Street team to focus on core asset management initiatives across our portfolio of assets. With these changes in place the company is looking forward to build a best in class platform for real estate investment and management”
Best Regards
Pradeep Pattem, CEO
For further information please contact Pradeep Pattem, CEO at nordicom@nordicom.dk
