Egger Holzwerkstoffe GmbH, the parent company of the international wood-based material manufacturer EGGER, St. Johann in Tirol, has successfully completed the issue of a deeply subordinated hybrid bond with perpetual maturity and an early redemption option for the issuer after five years.
The issue, which has a minimum subscription volume of EUR 100,000 exclusively to institutional investors, was placed, with a total amount of EUR 150 million, mainly to European investors. The coupon was fixed at 4.875 % due to the great interest.
"We are pleased about the investors' trust in us as a solid Austrian family-owned company," says Thomas Leissing, spokesman for the EGGER Group Management and responsible for finance and administration. "In addition to general corporate financing, the proceeds will support the current and future strategic investment programme as a basis for long-term profitable growth, as well as optimise our financing structure and strengthen our own funds base.
The family company, founded in 1961, employs approximately 9,000 people. In 18 plants across the world, they produce an extensive product range of wood-based materials (chipboard, OSB, and MDF boards) as well as timber. The company generated a turnover of EUR 2.38 billion in the 2016/2017 financial year and has worldwide customers in the furniture industry, wood and flooring retailers, as well as DIY markets. EGGER products are found in countless areas of private and public life, including kitchens, bathrooms, offices, living rooms and bedrooms. EGGER is a full-range supplier for the furniture and interior design industry, for wood construction, as well as wood-based flooring (laminate, cork and design flooring) industries.
Since 1998, EGGER at Auchinleck, has continued to significantly invest in its operations. This includes multi-million pound investments in a recycling plant, a chipboard production line upgrade, a pre-drier installation and an engineering building upgrade to include a purpose-built apprentice training facility for early years apprentices to learn their trade in an isolated and safe environment.
This announcement is neither a prospectus nor an offer to sell, nor a solicitation to buy any securities, nor a financial analysis or advice or recommendation related to financial instruments. The securities have not been and will not be issued under foreign securities laws, notably pursuant to the U.S. Securities Act of 1933, as amended (the "Securities Act"), registered with foreign securities authorities, and may not be offered or sold in the United States of America ("USA") without registration or exemption from the registration requirements under the Securities Act.