SANHA GmbH & Co. KG, a leading manufacturer of pipe systems and fittings for the plumbing, heating and cooling (PHC) industry, reports that less than 50% of the outstanding bond volume voted at the vote without meeting of the holders of the SANHA 2013/2018 corporate bond (ISIN: DE000A1TNA70) held in accordance with section 18 SchVG. This means that the vote had no quorum. Bondholders holding approx. 16% of the outstanding bonds in the total nominal amount of EUR 37,063 million participated in the vote, which took place from 25 to 31 July 2017. Given that some registrations failed to meet requirements, the valid votes amounted to approx. 11%. More than 90% approved the refinancing scheme presented by the company.
SANHA has proposed to its bondholders to extend the 2013/2018 corporate bond by another five years to 2023. The key aspects of the proposed refinancing scheme include real estate as collateral for the bondholders in the amount of over EUR 10 million, annual repayment of the corporate bond in the amount of 10% of the present bond volume from 2019 to 2022 and a coupon of 5.5% p.a. as of the commencement of the extension in June 2018.
Because of the insufficient participation in the vote, a second bondholders’ meeting will be convened, which will take the form of a physical meeting for the purpose of passing a new resolution. A lower quorum of 25% of the outstanding bond volume is required for this vote. The meeting of the holders of the SANHA 2013/2018 bond will take place in Essen on 15 September 2017. The invitation to the meeting, at which bondholders may be represented by proxies, will probably be published in the Federal Gazette and on the SANHA website on 7 August 2017. Prior registration is required also for this physical meeting.
Bernd Kaimer, Managing Partner of the family-owned company: “The high rate of approval for our refinancing scheme confirms the positive impression that the terms and conditions proposed by us for the extension of the bond are fair and well balanced. The insufficient participation rate is due to the fact that many larger investors indicated their approval but only wanted to participate in the vote at an expected second meeting.”
Preliminary figures for H1 2017: Sales revenues and EBITDA fully on track
The company additionally announces preliminary figures of the SANHA Group for the first six months of 2017, according to which the Group’s sales revenues amounted to approx. EUR 51 million, which was just on a par with the previous year and slightly above the management’s projections. This also applies to first-half EBITDA, which amounted to approx. EUR 4.9 million. This is equivalent to an EBITDA margin of close to 10% (previous year: 10%). Preliminary first-half earnings after taxes were slightly positive. The price increases implemented in the second quarter will take full effect in the second half of the year. Based on preliminary figures, the management confirms the forecast for the full year 2017, according to which sales revenues will amount to slightly above EUR 100 million and the EBITDA margin to 10%. The full report on the first six months of 2017 will be published on 29 August 2017, i.e. earlier than originally planned.
