Ahlstrom issues EUR 80 million hybrid bond


Source: Ahlstrom-Munksjö

As a correction to the heading of the previous stock exchange release published on November 9, 2009 at 15.12 EET, Ahlstrom Corporation announces that it issues EUR 80 million hybrind bond instead of EUR 80 hybrid bond.

Ahlstrom Corporation, a leading supplier of nonwovens and specialty papers, has resolved to issue a EUR 80 million domestic hybrid bond. The coupon rate of the bond is 9.50% per annum. The bond has no maturity but the company may call the bond after four years. The bond was oversubscribed.

The hybrid bond will strengthen Ahlstrom's capital structure. The arrangement will also abrogate the impact of the dividend payment restrictions related to the reduction of the gearing ratio that were included in the EUR 200 million revolving credit facility agreement signed in July 2009.

A hybrid bond is an instrument which is subordinated to the company's other debt obligations and which is treated as equity in the IFRS financial statements. Hybrid bonds do not confer to their holders the right to vote at shareholder meetings and do not dilute the holdings of the current shareholders.

The lead manager of the bond issue was Nordea Markets.

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