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Citycon Oyj (HEL:CTY1S) CITYCON OYJ Stock exchange release 18 November 2008 at 13.10 hrs
Citycon Oyj has repurchased its subordinated convertible capital bonds issued on 2 August 2006 (the "Convertible Bonds") for an aggregate consideration of EUR 6.4 million including accrued interest through deals executed between 11 and 18 November 2008. The face value repurchased by the company amounted to EUR 11.1 million corresponding to 222 bonds with face value of EUR 50,000 corresponding to approximately 10 per cent of the aggregate amount of the Convertible Bonds due 2013.
Including the buybacks Citycon concluded between 28 October and 4 November 2008, Citycon has repurchased a total principal amount of EUR 21.1 million of the Convertible Bonds corresponding to approximately 19 per cent of the aggregate amount of the Convertible Bonds. The weighted average repurchase price was 54.8 per cent of the Convertible Bonds' face value. The principal amount of the Convertible Bonds listed on 22 August 2006 amounts to EUR 110 million and the Convertible Bonds carry an interest at the rate of 4.50 per cent p.a. The Convertible Bonds were issued to international institutional investors in deviation from the pre-emptive rights of shareholders based on the authorization of the company's Annual General Meeting held on 14 March 2006.
The repurchases of the bonds were executed in the open market in accordance with section 7 (f) of the terms and conditions of the Convertible Bonds. In accordance with the terms and conditions of the Convertible Bonds the company will cancel the repurchased bonds. The repurchases were carried out because the market situation has enabled the company to repurchase the bonds at a price clearly below their face value and because the repurchases enable the company to strengthen its balance sheet and decrease its net financial expenses.
Helsinki, 18 November 2008
CITYCON OYJ Petri Olkinuora CEO
For further information, please contact: Petri Olkinuora, CEO Tel. +358 20 766 4401 or mobile +358 400 333 256 petri.olkinuora@citycon.fi
Distribution: NASDAQ OMX Helsinki Major media www.citycon.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
