PA Resources Discloses Final Outcome of Fully Subscribed Bond Issue

PA Resources has now completed the calculation of subscriptions for the issue of convertible bonds with preferential rights for the company's shareholders. As previously announced the issue of convertible bonds was fully subscribed.

Of the total issue approximately 44% was subscribed for with preferential rights and approximately 56% without preferential rights. The guarantee consortium of investors committed to guarantee part of the new issue subscribed for approximately 53%.

A total of 72,757,002 convertible bonds, corresponding to a nominal amount of SEK 1,164,112,032, were subscribed for in the issue. The issue will generate approximately SEK 1,090 million after deduction of issue costs. In the event that all convertible bonds would be converted to shares, the number of shares in the company would increase to 218,271,006, corresponding to a dilution of approximately 33%.

The convertible bonds are expected to be traded on the NASDAQ OMX Nordic Exchange Stockholm from  January 15, 2009. Since January 1, 2009, Oslo Stock Exchange allows for dual listings of convertible bonds. PA Resources will therefore also apply for such listing of the convertible bonds on Oslo Stock Exchange within short.

"I'm pleased to announce that the issue of convertible bonds has been successfully completed and fully subscribed. The proceeds from the issue of convertible bonds will create a strong long-term financing for the company," said Ulrik Jansson, President and CEO at PA Resources.

Terms and conditions for the convertible bonds in brief

The convertible bonds carry interest at an annual rate of 11% from January 15, 2009. Interest is paid to the holder on Jan. 15 each year, starting on January 15, 2010 and the last time on January 15, 2014. The convertible bonds fall due for payment of the nominal amount on January 15, 2014 unless conversion or repayment has occurred prior to this date. Conversion to shares may be requested during the period Sept. 1-30 annually. The conversion price is SEK 16 per share. Carnegie has acted as financial advisor to PA Resources.


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