Aspo considers capital securities issuance and tender offer

Aspo Oyj, a Finnish industrial group, announced on April 9, 2020, that it is considering issuing new capital securities, structured as a hybrid bond, with a minimum value of EUR 15 million. Concurrently, the company has launched a voluntary cash tender offer for its outstanding EUR 25 million in capital securities from 2016.

The dual move aims to partially finance the repurchase of the 2016 securities and to address Aspo Group's general funding requirements. The transactions are being undertaken during the company's quiet period due to exceptional market conditions, according to the announcement.

The 2016 capital securities have an earliest possible redemption date of May 27, 2020. Aspo proposes to purchase all validly tendered securities but reserves the right to determine the final acceptance amount. The purchase price is set at EUR 100,000 per note, plus accrued interest.

The tender offer period runs until April 21, 2020. The completion of the tender offer is contingent upon, among other things, the pricing and successful issuance of the new capital securities. Indicative results are expected around April 21, with final results announced no later than April 27, 2020.