By Susanna Moon
Chicago, March 24 - Etrion Corp. said it plans a €45 million to €60 million private placement of 9% corporate bonds with a four-year maturity in the Norwegian bond market.
Etrion's major shareholder, the Lundin family, has committed to subscribe for €15 million of the bond issue.
Proceeds will be used for repayment of the bridge loan provided by Etrion's former major shareholder, Lundin Petroleum AB. The bridge loan facility expires on Nov. 15, 2011.
ABG Sundal Collier Norge ASA is the lead manager.
Closing is expected in April.
"We look forward to refinancing the Lundin Petroleum bridge loan on a longer maturity. Lundin Petroleum's financial support accelerated our growth dramatically over the last year, allowing us to build significant shareholder value and exit 2010 with nearly 50 MW of solar power plants operational in Italy," Garrett Soden, the company's chief financial officer, said in a press release.
"The successful completion of this bond offering will clearly demonstrate that alternative sources of capital are available to Etrion beyond the equity capital markets."
The issuer is a Vesenaz, Switzerland, solar utility company.
| Issuer: | Etrion Corp.
|
| Issue: | Corporate bonds
|
| Amount: | €45 million to €60 million
|
| Maturity: | Four years
|
| Coupon: | 9%
|
| Warrants: | No
|
| Manager: | ABG Sundal Collier Norge ASA (lead)
|
| Investor: | Lundin family for €15 million
|
| Announcement date: | March 24
|
| Stock symbol: | Toronto: ETX
|
| Stock price: | C$0.92 at close March 23
|
| Market capitalization: | C$165.38 million
|
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