Highlight 22 June 2020

Krogerus advises SRV on two public offerings of shares and the extension of the maturity of its senior unsecured bonds in a comprehensive refinancing transaction

Krogerus advised construction development company SRV Group Plc on two public offerings of shares: the first being a directed share issue to holders of its hybrid notes for the purpose of converting their hybrid notes into shares, and the other being a rights issue.

In the directed share issue, SRV issued new shares to holders of its hybrid notes for an aggregate subscription price on some EUR 75 million. Subscriptions for the new shares were paid by setting off hybrid notes and accrued interest. The rights issue was oversubscribed and raised gross proceeds of some EUR 50 million.

In connection with the two share issues, Krogerus also advised SRV on amendments to the terms and conditions of its senior unsecured bonds originally due 2021 and 2022. The amendments were carried out in written procedures, which e.g. extended the maturities of the bonds.

Previously, Krogerus advised SRV on the renegotiation of its revolving credit facility with its principal lenders and the sale of stakes in the REDI shopping centre and the Tampere Central Deck and Arena project.

SRV is a developer and innovator in the construction industry. In 2019, SRV's revenues were EUR 1,061 million. It employs over 1,000 people and has a network of almost 4,000 subcontractors in its projects.

The Krogerus team was led by Partner Tom Fagernäs, who was assisted primarily by Counsel Paul Raade, Senior Associates Taru Kovanen and Jenni Teurokoski and Associates Samuli Torpisto and Joel Kanervo.

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