SOURCE: Service Point Solutions, S.A.

October 30, 2007 10:58 ET

SPS' last bond conversion period begins on 16 November

BARCELONA, SPAIN--(Marketwire - October 30, 2007) - SPS' last bond conversion period begins on 16 November

- The last conversion period will run from 16 to 30 November 2007, both dates inclusive, at a conversion ratio of 1 share for every 9 bonds

- The corresponding new shares will be issued in December 2007 while bonds that are not converted into shares of will be repaid at 31 December 2007 at their nominal value, i.e., EUR 0.12 per bond

- The newly issued shares will carry the same rights as those currently outstanding; specifically their holders will be entitled to participate in the 1x30 scrip issue slated for 3Q08

- If all outstanding bonds are converted, SPS' debt will be reduced by EUR 1.73mn

Barcelona, 30 October 2007- The final conversion period for the 14,426,039 outstanding SPS 2005 convertible bonds into ordinary shares (3.73% of the issue) will commence on 16 November 2007. This period, initially scheduled for February 2010, was modified at the company's General Assembly of Bondholders, a proposal that was subsequently ratified at the General Shareholders' Meeting last June.

Characteristics of the final conversion period:

1. The conversion period will last 15 calendar days, i.e. from 16 to 30 November 2007, both dates inclusive.

2. The exchange ratio is one (1) share for every nine (9) bonds held. Conversion requests must be made for multiples of 9 convertible bonds.

3. Bondholders wishing to convert their bonds during this period should so request within the aforementioned timeframe before the participating Iberclear entity (bank, savings bank, company or brokerage) with which the bonds to be converted are deposited and in writing. Said request shall be irrevocable.

4. The company will issue the shares to cover bond conversion requirements in December 2007. Bonds that are not converted into shares of Service Point Solutions, S.A. in November 2007 will be repaid at 31 December 2007 at their nominal value, i.e., EUR 0.12 per bond.

5. The newly issued shares will carry the same rights as those outstanding at the time of issuance; specifically, holders will be entitled to participate in the 1x30 scrip issue approved at the General Shareholders' Meeting last June and slated for 3Q08

If bondholders request that all outstanding bonds are converted, the company will issue 1,602,893 shares to cover the entire conversion. This number of shares is equivalent to 1.53% of total outstanding shares today. If the bond issue is converted in its entirety, the company's net debt will be reduced by EUR 1.73mn.

Current scant liquidity and trading volatility, combined with high administrative costs associated with the management of said bonds, underpin the company's decision to bring the final conversion period forward in time. This move will also serve to simplify the company's balance sheet.

Bringing the final conversion period forward in time enables the company to:

- Eliminate administrative costs associated with the issue; these costs are no lo longer warranted since they currently represent an extremely high percentage of the balance of outstanding bonds.

- Increase operating flexibility; currently the company is unable to execute transactions on its capital during two several week-long periods each year, during which time it needs to attend to the legal processes related to the conversion periods.

- Simplify its balance sheet, rendering it more transparent to investors, financial entities, etc. The elimination of the convertible bonds will increase the company's debt capacity and financial flexibility.

The aforementioned benefits to the Company should create value for existing shareholders and for new shareholders pursuant to the conversion of their bonds into SPS shares. Accordingly, current bondholders have the opportunity to partake of the operating and financial benefits that will accrue to SPS.

This initiative additionally permits those bondholders so wishing to convert their debt instruments into SPS shares, a far more liquid and less volatile security, at a significant discount, or, alternatively, to have their bond repaid at nominal value ahead of time.

Service Point Solutions (www.servicepoint.net) provides digital reprographics and document management services to the AEC (architects, engineers and construction), manufacturing, public and services sectors. It employs over 2,500 people across 6 countries (the UK, US, Spain, Germany, Holland and Norway) via a network of 116 service points worldwide and 714 facilities management and OSS (onsite services) programs. SPS is headquartered in Spain and listed on the Spanish stock exchanges.


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Contact Information

  • For further information:

    Service Point Solutions S.A.
    Cori Pellicer
    Email Contact
    Tel +34 93 5082400
    Fax +34 93 5082442