Swisslog's banks agree to company's debt restructuring

By Jeff Pines

Washington, Jan. 29 - Swisslog said all of its lender banks have agreed to the company's financial restructuring plan. Bank loans of CHF184 million will be exchanged for stock and the maturity date for the company's CHF150 million of 2.25% convertible bonds will be extended to Dec. 31, 2009 from 2005. In addition, the coupon will be adjusted.

Existing shareholders will be able to participate in a rights offering, and there will be new appointments to the board of directors.

Shareholders and bondholders will vote on the restructuring at separate meetings on Feb. 26 in Zurich.

The plan calls for Lombard Odier Darier Hentsch & Cie. to buy the bank loans for CHF139.0 million leaving the banks with a CHF45.0 million loss or about 24.5% of their outstanding loans.

LODH will waive its rights under these loans and obtain the right to subscribe for 141.5 million new registered shares, to be fully paid up, at par value of CHF0.01 per share

LODH will then sell these shares to new investors for CHF1.00 per registered share. LODH has already received firm commitments from these new investors to subscribe for all 141.5 million registered shares at a price of CHF1.00 per registered share.

Other existing bank facilities totaling CHF100.0 million will be extended until June 30, 2006 at market conditions. These facilities shall be secured by the pledge of Translogic, a subsidiary of Swisslog, the company said.

Interest payments due in July 7 of each year on the convertible will be adjusted to: 0.50% for 2003/04, 1.0% for 2004/05, 1.5% for 2005/06, 2.0% for 2006/07, 2.5% for 2007/08, 3.0% for 2008/09 and 3.5% for July 7, 2009 to Dec. 31, 2009.

Bondholders will release the existing pledges in their favor with a nominal amount of CHF16.4 million and agree to Translogic being pledged in favor of the banks to secure the facilities. Furthermore, the bondholders will agree to certain divestments.

After the transaction, the bondholders' position will have improved significantly, as bank debt of CHF184 million will be removed, the company said.

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