Parlem Telecom Companyia de Telecomunicacions, S.A. has annoounced the signing of an investment agreement with INVEREADY CONVERTIBLE FINANCE II FCR for the issue of Parlem’s convertible bonds up to €6 million. The funds will be used to accelerate the Company’s organic and inorganic growth.
The amount, up to €6 million, is divided into a first tranche of €3 million, a second tranche of €2 million and a third tranche of €1 million.
The cash interest rate is Euribor 3M (floor 0.00%) plus a spread of 3.50% p.a. payable quarterly, with an interest rate payable at maturity or upon conversion of 3.49% per annum. The maximum interest rate (cap), the sum of the cash interest rate and the PIK will be capped at 7.30% per annum and the conversion price will be €7 per share with a conversion period: from 18 months after subscription until maturity.
The first tranche of convertible bonds will have a maturity of 60 months from the subscription date, while the convertible bonds of the second and third tranche will have a maturity of 57 months.
The Company has initiated the process of issuing the convertible bonds with a view to convening, at the proposal of the Board of Directors, a General Meeting of Shareholders.
to convene, at the proposal of the Board of Directors of the Company, an Extraordinary General Meeting of Shareholders in order to approve the issue of such convertible bonds with the exclusion of pre-emptive subscription rights.
Garrigues advised Parlem with a team formed by partner Naiara Bueno and senior associate Arturo Noguer.
Evergreen Legal advised Inveready with a team comprising partner Alberto Campo and of counsel Yurena Medina.