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Bond Issue Completed, Concludes USD 19m Balance Sheet Strengthening by Strategic Investors

Agrinos announces today that it has completed a bond issue of NOK 115m (USD ~17m) in principal amount of Senior Convertible Bonds. 

The bond issue, announced November 12th, 2014 was guaranteed by Agrinos' shareholders and strategic investors Manor Investment S.A. and Havfonn AS for an aggregate amount of NOK 113 million (USD ~17 million). Board member Gerardo Esquer also participated in the bond issue with NOK 1.7m (USD ~0.25 million).

In addition, with reference to news release November 17th, 2014, Manor and Havfonn (with associated companies), as well as Gerardo Esquer, have exercised rights for new shares in Agrinos that will generate proceeds NOK 12.8 million (USD ~2.0 million). Manor and Havfonn are represented at the board by Jean-Baptiste Oldenhove and Morten Bergesen respectively.

Through the bond issue and the rights exercises combined, Agrinos’ strategic investors and board members have strengthened the company’s balance sheet with NOK 128m (USD ~19m) before 2014 closes.

The proceeds will be used to fund research and development activities, production facilities and development of commercial activities in core markets.

The bonds carry an interest rate at 3 months NIBOR plus 10%, and interest is paid in kind through issuance of new bonds. The bonds will be convertible into common shares of the Company at NOK 6 per share between 1 April 2016 and 31 March 2017, NOK 8 per share between 31 March 2017 and maturity, within 30 business days following completion of a qualified issuance of equity by issuer at 25% below the relevant issuance price, or at NOK 1 per share within 30 business days after the occurrence of an event of default. Agrinos will have the right to call the bonds from April 1, 2016 at a price equal to the nominal value plus accrued interest.

The senior convertible bond issue is subject to approval by the extraordinary general meeting of Agrinos to be called for and the bonds are expected to be issued mid December 2014. The bonds will not be listed but Agrinos may decide to list the bonds on an exchange at a later stage. 

The bond issuance will be organized through Nordic Trustee ASA and the Bonds will be registered in Verdipapirsentralen ASA (VPS), the Norwegian central securities depository. The guarantors Manor and Havfonn will receive a subscription guarantee fee of 1%, settled in bonds. The transaction was non-brokered and solely run by the company. 

Contact information
Harald Bjørland
EVP corporate communications and IR
Mobile: +47 908 58 221
E-mail: harald.bjoerland@agrinos.com

About Agrinos

Agrinos is a biological crop input provider committed to improving the productivity and sustainability of modern agriculture. Agrinos’ range of High Yield Technology® (“HYT®”) products helps farmers to practice profitable agriculture by providing increased crop productivity, improved efficiency of conventional fertilizer and a reduced environmental footprint. 

Certified as organic and based on Agrinos’ proprietary technology, the HYT® products provide benefits by strengthening the soil-based microbial ecosystem, stimulating crop development at key points in the growth cycle and boosting natural plant resistance to pathogens and threats. With solutions for a variety of crop categories, the technology comprising the HYT® products has demonstrated its value in third-party trials in key agricultural regions worldwide.

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