Oslo, November 18, 2021 – ASA Ice Cream Group (OSE: ICEGR) (“ICE Group” or the “Company”)
ICE Group has for some time reviewed its business plan options and financing in conjunction with a broader review of its debt and equity structure. As a result of this review, the Company is now presenting a new business plan involving accelerated growth in the number of subscribers with two distinct market concepts and an accelerated 5G deployment plan. The new business plan includes new medium and long-term objectives on the revenues of NOK 4-5 billion, adjusted EBITDA margin above 30% and smartphone market share in Norway more than 20%. The implementation of the business plan depends on the success of the financing, as described below.
Furthermore, ICE Group has entered into an agreement with GoldenTree Asset Management LP (“GoldenTree”) regarding the previously announced dispute between Golden tree and ICE Group subsidiary company AINMT Holdings AB (“AINMT”) regarding the loan agreement between GoldenTree, certain other lenders and AINMT (the “GT Loan Agreement”). AINMT has entered into a conditional settlement agreement with GoldenTree and the other lenders under the GT Loan Agreement, whereby the parties agree that upon payment by AINMT about NOK 1,500 million, (exact amount depending on the settlement date and the current exchange rate), the GT loan will be paid in full and the parties will be released from any claim and counterclaim relating to the dispute and the GT Loan Agreement, provided that the lenders under the GT loan agreement receive payment within the agreed timeframe December 31, 2021, which is conditional on the Company raising sufficient funds for payment.
Following the new business plan and the GT loan settlement agreement, ICE Group is considering various alternatives to finance the new business plan and the GT loan settlement amount, with the aim of reducing the complexity of the capital structure and lowering its cost of capital. An alternative currently being explored is to seek additional financing through a possible capital increase with gross proceeds of up to 2,500 million NOK, of which approximately NOK 1,500 million will be used to pay the GT loan and the balance up to 1000 million NOK will be used for investment opportunities identified in the new business plan, including investments in 5G deployment, network capacity, deferred payments and other CAPEX to facilitate future growth.
In parallel, ICE Group is in talks regarding the potential conversion to equity of its debt at Rasmussengruppen AS (“RG”) of the currently unpaid principal amount of SEK 546 million and convertible bonds for the principal amount currently outstanding of NOK 760 million. The three majority shareholders of the Company support the ongoing process and are in talks with the intention of supporting the Company by converting debt into equity as described above. The main shareholder of the Company has indicated that it does not plan to participate in the potential capital increase described above and has expressed its interest in participating in the recapitalization by converting its part of the convertible bonds.
Note that each and all of the GT settlement, the potential conversion of debt to equity, and the potential increase in equity depend on each other. Therefore, if the Company fails to increase equity as described above, the other measures will lapse.
If successful, the potential transactions mentioned above could fundamentally improve the capital structure of the Company, reduce net interest bearing debt by approx. 50% and reduce the Company’s overall interest expense by nearly NOK 300 million per year.
The remaining financing requirement under the new medium and long term business plan is expected to be financed by an increase in secured and unsecured debt of approx. NOK 1 billion in Ice Group Scandinavia Holdings AS, with a medium and long-term leverage target of 3 to 4x NIBD / EBITDA, in line with its peers.
The Company has prepared an updated presentation of the Company which is available on its website: https://icegroup.com/investor/reports-and-presentations.
The Company has retained DNB Markets, a part of DNB ASA Bank and Pareto Securities AS (the “Managers”) as financial advisers. The Managers have already initiated discussions with potential strategic and financial investors. The timing, structure and size of any capital transaction are unclear at this time and the Company, together with its advisers, will continue its work to assess potential alternatives to refinance the capital. ICE Group from a holistic perspective. It is pointed out that apart from the agreement with GoldenTree, no agreement has been concluded concerning the planned fundraising and refinancing and that the new envisaged business plan is conditioned on ICE Group having finalized the refinancing as set out in this press release. At this stage, there is no guarantee that ICE Group will be able to obtain the required refinancing or successfully implement other options to meet its financing needs.
The alternative performance measures used in this announcement are defined and explained in the Company’s Q3 2021 report.
Advokatfirmaet BAHR AS has been engaged as legal advisor to the Company, and Advokatfirmaet Thommessen AS was hired as legal advisor to the Managers.
* Espen Risholm, Head of Investor Relations, +47 924 80 248, [email protected]
* Ola Beinnes Fosse, CFO, +47 975 31 227, [email protected]
This information is considered inside information in accordance with Article 7 of the EU Market Abuse Regulation and is subject to disclosure requirements in accordance with Article 5-12 of the Norwegian Securities Act and in Article 19 of the EU Market Abuse Regulation. stock Exchange the announcement was posted by Espen Risholm, Head of Investor Relations in ICE ASA Group, to November 18, 2021 To 07h00 CET.
This announcement is not and does not form part of an offer to sell or a solicitation of an offer to buy securities of the Company. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. No copy of this announcement is made and may be distributed or sent to any jurisdiction in which such distribution would be illegal or require registration or other action. Persons in possession of this advertisement or any other information are required to inform themselves and to respect these restrictions.
The securities referred to in this press release have not been and will not be registered under the we Securities Act of 1933, as amended (the “Securities Act”), and therefore may not be offered or sold in United States in the absence of registration or an applicable exemption from the registration requirements of the Securities Act and in accordance with the we state securities laws.
The matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical fact and can be identified by words such as “believe”, “expect”, “anticipate”, “strategy”, “intention”, “estimate” “,” Will “,” may “,” continue “,” should “and similar expressions. The forward-looking statements contained in this press release are based on various assumptions, many of which, in turn, are based on other assumptions. Although the Company believes these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other significant factors that are difficult or impossible to predict and are beyond its control. By their nature, forward-looking statements are subject to many factors, risks and uncertainties that could cause actual results to differ materially from those expected. Readers are cautioned not to place undue reliance on these forward-looking statements. Except for any continuing obligation to disclose material information as required by applicable law, the Company has no intention or obligation to publicly update or revise any forward-looking statements after the broadcast of this announcement, whether such either to reflect future events or circumstances or otherwise.
Neither the Managers nor any of their respective affiliates make any representation as to the accuracy or completeness of this advertisement and neither of them accepts any responsibility for the content of this advertisement or any matter therein. mentioned.
This announcement is for informational purposes only and should not be relied upon as a substitute for the exercise of independent judgment. It does not constitute investment advice and should in no case be used or considered as an offer to sell, or a solicitation of an offer to buy securities or a recommendation to buy or sell the Company’s securities. . Neither the managers nor any of their respective affiliates accept any liability arising from the use of this advertisement.
- Download the announcement in PDF.pdf format
© NTB Norway, source English NTB regulatory releases