Bong AB: Convertible bonds issue placed with Swedish institutional and qualified investors as well as a new additional credit facility agreed upon

Regulatory News:

NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, SINGAPORE, SOUTH AFRICA OR NEW ZEALAND OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OF THIS PRESS RELEASE WOULD BE UNLAWFUL.

On 17 June 2013, Bong AB (publ) ("Bong" or the "Company") announced that the Company's Board of Directors on 16 June 2013 had resolved, subject to approval by the EGM, to launch a fully underwritten rights issue of approximately SEK 125 million, set-off issues directed to Holdham S.A. and Bong's two largest lending banks (the "Banks") of approximately SEK 100 million and SEK 50 million, respectively, and a convertible bonds issue of up to approximately SEK 200 million directed to institutional investors. The purpose of the proposed transactions is to strengthen the Company's financial position and provide improved prerequisites for increased profitability.

A new agreement has now been reached with the Banks which extends the previously agreed upon facilities with a third facility of SEK 100 million. The new credit facility runs over a period of five years without instalments with an interest rate which results in a saving in interest expense compared to the interest rate which would have been paid to the convertible bondholders under the maximum amount of the convertible bonds issue. Further, the convertible bonds issue, directed to a number of Swedish institutional and qualified investors, is now placed and closed with a nominal value of SEK 75 million.

The Board shall no later than on 15 July 2013 determine certain terms for the convertible bonds issue, including interest rate and conversion price. The final terms will be published in a press release.

Financial and legal advisers

ABG Sundal Collier AB is financial adviser to Bong and Advokatfirman Vinge is legal advisor to Bong in connection with the convertible bonds issue.

About Bong

Bong is a leading provider of specialised packaging and envelope products in Europe, offering solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are the Propac packaging concept and Russia. The Group has annual sales of approximately SEK 3 billion and about 2,100 employees in 15 countries. Bong has strong market positions in the majority of key markets in Europe, and the Group sees interesting possibilities for continued expansion and development. Bong is a public limited company whose stock is quoted on the NASDAQ OMX Stockholm (Small Cap).

Bong AB (publ) discloses the information in this press release pursuant to the Securities Markets Act. The information was provided for public release on 2 July 2013 at 07.30 am CET.

Important information

This press release does not constitute an offer of any securities of Bong. No transaction described in this press release is directed to shareholders or other investors domiciled in the United States, Australia, Hong Kong, Japan, Canada, Singapore, South Africa or New Zealand, or in any other country where participation in such transaction would require additional prospectuses, registration or other measures other than those pursuant to Swedish law or would conflict with regulations in such country. No shares, interim shares, subscription rights, convertibles or other securities issued by Bong have been or will be registered in accordance with the United States Securities Act of 1933, or in accordance with any securities legislation in any state of the United States or any province in Canada. Accordingly, no new shares, interim shares, subscription rights, convertibles or other securities issued by Bong may be transferred or offered for sale in the United States or Canada, other than in such exceptional cases that do not require registration. The transactions described in this press release are directed only at (i) persons who are outside the United Kingdom; (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended); or (iii) persons to whom it can otherwise lawfully be directed at.

This information was brought to you by Cision http://news.cision.com