Bong plans to sell SEK 200 million of five-year convertibles

By Rebecca Melvin

New York, June 17 - Bong AB plans to price SEK 200 million of five-year convertibles under a Regulation S offering for institutional investors, with pricing expected no later than July 15, according to a news release.

The company is also pricing stock offerings including a SEK 125 million rights issue with preemptive rights for existing shareholders and an issue of new shares for Holdham SA with payment by set-off of claims under convertible bonds and shareholder loans of about SEK 100 million.

The financings are aimed at strengthening the company's balance sheet and financial position, with proceeds to be used for partial repayments of current bank loans.

There is an extraordinary general meeting of shareholders for approval of the issues slated for July 17.

ABG Sundal Collier AB is a financial adviser to the company on the deals, and Advokatfirman Vinge is legal adviser.

Stockholm-based Bong is an envelope and packaging products company.

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