Outotec Oyj, Espoo

Outotec to issue 150 million hybrid bond

Outotec Oyj will issue a € 150 million hybrid bond. The coupon rate of the bond is 7.375% per annum. The bond has no specified maturity date but the company may exercise an early redemption option for the first time on March 24, 2021. The settlement date of the bond is March 24, 2016. The hybrid bond will strengthen Outotec's capital structure and it will be used for the refinancing of existing debt and for Outotec's general corporate purposes.

"In Outotec's current business environment it is important to have a conservative balance sheet. The requirement for additional capital is considered temporary, thus the hybrid bond transaction supports us well in this downcycle. We are very pleased with the broad interest from both institutional investors as well as private banks. Due to the strong demand, the hybrid bond was significantly oversubscribed, which is a clear indication of investors' confidence in Outotec," says Pertti Korhonen, CEO of Outotec.

A hybrid bond is an instrument which is subordinated to the company's other debt obligations and which is treated as equity in the company's consolidated financial statements prepared in accordance with the IFRS. The hybrid bond does not confer to its holders the rights of a shareholder and does not dilute the holdings of the current shareholders.

Pohjola Bank plc is acting as coordinator and Pohjola Bank plc and Nordea Bank Finland Plc as lead managers in the transaction. Roschier Attorneys Ltd acts as legal advisor to Outotec.

Outotec Oyj, Espoo