Rapala VMC Corporation issued hybrid capital securities in the aggregate amount of €25 million ($29 mm). The subordinated debt, which will be treated like equity on Rapala’s financial statements, bears a fixed coupon interest of 9.0 percent through November 27, 2028, and then reverts to a floating rate.
The proceeds from the issue will be used to refinance hybrid capital securities issued by Rapala VMC on November 29, 2023, with an initial nominal amount of €30 million (ISIN: FI4000560628), and for general corporate purposes.
The Finnish fishing tackle company noted that, as announced on November 14, Rapala VMC’s largest shareholder, Viellard Migeon Et Compagnie Sa, had committed to participate in the bond issue by rolling its existing holding in an amount of €7.2 million into the offering. Due to strong interest from existing and new investors and high book oversubscription, Viellard Migeon Et Compagnie Sa participated in the issue by subscribing for capital securities in the amount of €3.1 million.
“The wide support from investors in our refinancing at better conditions acknowledges the positive developments in our performance as well as confirms the relevance of our strategy. We are very thankful to all who have renewed or newly placed their trust in Rapala VMC,” says Cyrille Viellard, president and chief executive officer of Rapala VMC.
Nordea Bank Abp and OP Corporate Bank plc acted as joint lead managers in the issue of the Capital Securities.
Rapala VMC group’s brand portfolio includes Rapala, VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini, Peltonen, and 13 Fishing, as well as Okuma in Europe.
Image courtesy Rapala
