08.05.2014 08:05:35
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ROODMICROTEC N.V. INTENDS TO ISSUE BOND LOAN WITH MORTGAGE COVER OF EUR 2,500,000 THROUGH NPEX
Strategy
RoodMicrotec's strategy is aimed at expanding and strengthening the organisation and at strengthening its market position. The company also wishes to have sufficient resources to respond to and profit from two major trends:
- Outsourcing
- Collaboration with (financial) partners (co-financing) and customers
Outsourcing
Medium-sized companies are increasingly working together in order to raise their joint services to a higher level so as to better combat competition from Asian countries. Major companies, usually Original Equipment Manafucters (OEMs), who still develop customer-specific ASICs or other chips in-house, are increasingly outsourcing this work to independent service providers like RoodMicrotec.
This creates a win-win situation. It enables OEMs to focus on their core activities, while it can also yield significant cost savings, quality improvements and a shorter time-to-market. The projects outsourced to Roodmicrotec run for several years, providing us with a solid base and more predictable sales. Equipment taken over from an OEM in the context of outsourcing projects can also be used for other customers in the market, which will further boost sales.
This outsourcing trend is expected to continue.
Collaboration with (financial) partners (co-financing) and customers
Collaboration with customers, but also with partners, including financial partners, is key for RoodMicrotec. The entire semiconductor industry is dependent on collaboration within the production chain. In this context, RoodMicrotec enters into various partnerships with its customers, and in the area of design with its design partners, which include knowledge institutes like universities and technical colleges, the Frauenhofer Institute, IMEC, technology partners, suppliers and government authorities.
The continuing lending restraint among banks is holding back the development of healthy fabless companies (FCs) with proven track records. In order to force a breakthrough, RoodMicrotec has set up schemes with partners to facilitate raising financing for healthy projects, in particular of FCs. With this approach, RoodMicrotec aims to boost the development of FCs and also to improve its sales and market position.
Bond loan with mortgage cover
RoodMicrotec believes it is necessary to further optimise its financial structure in order to better respond to the trends described above and get access more easily to certain market segments and therefore be able to better realise its growth objectives. For this reason, RoodMicrotec intends to attract additional financing with a maximum of EUR 3,000,000 with mortgage cover.
As part of this financing, RoodMicrotec N.V. will issue a bond loan with mortgage cover with a maximum of EUR 2,500,000 nominal value (EUR 2,350,000 effective) with a duration of six year, divided into 2,500 bonds of EUR 1,000 nominal value, at an issue price of 94% of the nominal sum with a fixed annual coupon of 6% (effective return approx. 7.4% at a 94% issuing price).
The interest is paid monthly in arrears. The bond is redeemed in full at maturity. As the bonds are quoted on the NPEX online trading platform, they will be tradable on a monthly basis.
RoodMicrotec will offer warrants on its shares with an exercise price of 13 eurocents to bond holders who invest in this bond loan. A pre-emptive right is granted to RoodMicrotec shareholders pro rata to the number of shares held.
'With the extra resources we are hoping to realise with the issue of this bond loan with mortgage cover, we will be able to respond more quickly and flexibly to market trends. I expect that this will enable RoodMicrotec to give its sales growth extra momentum. We are satisfied with the chosen structure because it offers our investors an attractive return at a very low risk', said Philip Nijenhuis, RoodMicrotec CEO.
Further details are available in the brochure 'Bond Loan with Mortgage Cover' published on www.roodmicrotec.com and www.npex.nl/RoodMicrotec. An investment memorandum will also be drawn up for this bond loan, which is expected to be published at the end of May on www.roodmicrotec.com andwww.npex.nl/RoodMicrotec.
About RoodMicrotec
With 40 years' experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers fabless companies, OEMs and other companies a one-stop shopping proposition. With its powerful solutions RoodMicrotec has built up a strong position in Europe.
Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors.
'Certified by RoodMicrotec' concerns inter alia testing of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard.
The value-added services comprise inter alia (eXtended) supply chain management, failure & technology analysis, qualification & burn-in, test- & product engineering, production test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting and total manufacturing solutions with partners.
RoodMicrotec has branches in Germany (Dresden, Nördlingen, Stuttgart), the UK (Bath) and the Netherlands (Zwolle).
Further information:
Philip Nijenhuis, CEO
Telephone +31 (0) 38 4215216
Email: investor-relations@roodmicrotec.com
Website: www.roodmicrotec.com
This announcement is distributed by Nasdaq OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: RoodMicrotec N.V. via Globenewswire
HUG#1783730
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