26 May 2023
Related to the directed new issue of shares worth SEK150m in April, chip and integrated module supplier Sivers Semiconductors AB of Kista, Sweden has now entered into a loan agreement with Formue Nord for financing up to SEK75m, of which SEK25m is a convertible loan at a fixed conversion rate of 9.61 SEK, corresponding to a dilution effect of about 1.1%.
The firm has also received a credit decision from a commercial bank for an additional SEK25m and is negotiating final loan agreements.
With the new loan financing of a total of SEK100m, Sivers will improve the terms for its financing, secure long-term financing and would add a total of SEK250m excluding transaction fees, including the directed new issue in April.
The loan facilities replace existing loan facilities of SEK100m from Modelio Equity AB and Exelity AB. Sivers will repay the outstanding loan amount to the lenders of SEK50m. Borrowings under the new loan facility are due for payment within two years and mature on 30 May 2025 and carry an interest rate of STIBOR 3M + 8%. The firm has the right to prepay the loan at any time.
“With this loan facility and the previous directed share issue, we have now secured a strong funding base to continue building the company’s growth journey within the major growth areas that we are currently addressing,” says Sivers Semiconductors’ group CEO Anders Storm. “The goal to grow net sales by +100% and reach profitability at the adjusted EBITDA level in the second half of 2023 stands firm,” he adds.
The directed convertible issue is a prerequisite for obtaining the SEK50m loan facility from Formue Nord. The issue is also positive for the firm’s capital structure. The board has made the assessment that an issue of convertibles with preferential rights for shareholders would have been significantly more time-consuming to implement and would have entailed increased exposure to market risk compared with a directed issue of convertibles. In light of the above, the board has made the assessment that the directed convertible issue with deviation from the shareholders’ preferential right was the most advantageous alternative for Sivers Semiconductors and in the interests of the shareholders.
Based on the issue authorization granted by the Annual General Meeting on 19 May 2022, the board has now resolved to issue the convertible totalling about SEK25m on the conditions set out above. The convertible may be converted into ordinary shares in the company during the period up to and including 16 May 2025.
Sivers Semiconductors enters into SEK100m loan agreement