Grammer AG’s EUR 40 Million Subscription Rights Capital Increase

Ashurst advised Grammer AG on the structuring and implementation of a capital increase with subscription rights.

The capital increase was effected from the authorised capital of Grammer and generates gross issuing proceeds of EUR 40m. The company’s main shareholder, Jiye Auto Parts GmbH, had irrevocably committed itself beforehand under a backstop agreement to exercising the statutory subscription rights to which it is entitled in connection with the capital increase with subscription rights and to acquire all new shares at the subscription price that were not subscribed for by the minority shareholders. With the implementation of this capital increase with subscription rights secured by the main shareholder, the company fulfils a requirement of the amendment agreement to the existing syndicated loan agreement concluded on 12 August 2020 between Grammer AG and the banking consortium with the participation of the Kreditanstalt für Wiederaufbau (KfW), through which it was expanded by a third tranche C amounting to EUR 235m.

The Ashurst team was led by partners Dr Gerrit Clasen (Picture) and Matthias von Oppen (both Corporate/Capital Markets). They were assisted by associates Joanna Wilczynska-Gluch (Capital Markets) and Quynh Anh Le (Corporate, all Frankfurt).

Involved fees earner: Gerrit Clasen – Ashurst; Quynh Anh Le – Ashurst; Matthias Von Oppen – Ashurst; Joanna Wilczynska-Gluch – Ashurst;

Law Firms: Ashurst;

Clients: Grammer AG;

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