FRANKFURT, March 27 (Reuters) - German 3D printing specialist SLM Solutions, whose top shareholder is activist fund Elliott, plans to raise 60 million euros ($66 million) in financing via a three-tranched convertible bond, it said on Friday.
The bond is fully backstopped by Elliott, which owns 28% in SLM Solutions, and comes at a time when funding is getting tight due to the coronavirus crisis.
“In these uncertain times, we are very pleased that we have the ability to raise substantial financing backed by the confidence and support of our largest shareholder,” Chief Executive Meddah Hadjar said.
“SLM’s strengthened financial position will allow us to continue to increase our leadership position in the additive manufacturing market.”
Existing shareholders and existing convertible bond holders will receive subscription rights for the first tranche of the bond, SLM said. Holders of the first tranche will then have the right to subscribe to the subsequent tranches, it added.
The bond will be issued at 100% of its nominal value, will have a coupon of 2% per year and a maturity of Sept. 30, 2026.
$1 = 0.9084 euros Reporting by Christoph Steitz; Editing by Mark Potter
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