Outokumpu’s €125 Million Convertible Bond Offering

Krogerus Attorneys Ltd advised the managers, including Citigroup Global Markets Limited.

Outokumpu Oyj issued a convertible bond worth 125 million euros, which will be convertible into new and/or existing ordinary shares in Outokumpu.

The convertible bonds were offered through an accelerated book building process to institutional investors and carry a coupon of 5.00 per cent per annum.

To facilitate the offering of the convertible bonds, concurrently with the placement of the convertible bonds, Citigroup Global Markets Limited conducted a placement of existing shares in Outokumpu on behalf of subscribers of the convertible bonds who wished to sell such shares in short sales in order to hedge the market risk of an investment in the convertible bonds. The initial conversion price of the convertible bonds represents a premium of 32.5 per cent above the placement price of such shares.

Outokumpu is expected to list the convertible bonds on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange or on another internationally recognised and regularly operating stock exchange.

Outokumpu is a global leader in stainless steel. They are the inventor of stainless steel and have a century’s expertise in making advanced materials. Their product offering covers 9 product ranges that include austenitic, ferritic, duplex and martensitic stainless steel grades. Outokumpu’s production sites located in Finland, Germany, Mexico, Sweden, the UK and US produce a wide range of stainless steel products, covering hot and cold rolled coil products, quarto plate and long products in various grades and sizes. In addition, they have worldwide network of sales companies and service centers.

Outokumpu has a unique competitive advantage through our own chrome mine and ferrochrome production in Finland. It employs about 11 000 professionals in over 30 countries around the world. Its head office is located in Helsinki, Finland, and its share has been listed in the Nasdaq Helsinki since 1988.

The Krogerus team, led by Tom Fagernäs (Picture), included Paul Raade.

Involved fees earner: Tom Fagernäs – Krogerus Attorneys Ltd; Paul Raade – Krogerus Attorneys Ltd;

Law Firms: Krogerus Attorneys Ltd;

Clients: Citigroup Global Markets Ltd;