Ultrasonic AG
Ultrasonic AG: Ultrasonic AG obtains USD 60 million credit facility to speed up growth
Ultrasonic AG / Key word(s): Miscellaneous 08.08.2014 18:51 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ultrasonic AG obtains USD 60 million credit facility to speed up growth Cologne, 8 August 2014 - With the prior approval of the Supervisory Board, the Management Board of the ULTRASONIC Group today signed an agreement between the Hong Kong holding China Ultrasonic Outdoorwear Holdings Co. Ltd. and Nomura International (Hong Kong) Ltd. on a USD 60 million (approx. EUR 45 million) credit facility. Along with Ultrasonic's strong internal financing capacity, this long-term credit facility increases scope for future organic and inorganic growth. Inorganic growth in particular has become more important in recent months. The Management Board is currently exploring various options for acquisitions as there are limits to the speed of organic growth. For example, competition for skilled workers in China is steadily increasing and this is raising employees' expectations both of their employer and of the associated location and infrastructure. By acquiring a complementary competitor with skilled staff, efficient production and, ideally, its own distribution structure and brand presence, Ultrasonic could generate further growth in the short term by extending its brand portfolio, integrating new production capacity and gaining new distribution channels. The new credit facility gives the company the necessary financial flexibility as it secures the long-term financing of the operating business and upcoming investments. The USD 60 million credit facility can be drawn within three months from signature of the agreement. If used, the nominal interest rate will be the 3-month USD Libor rate (currently 0.235%) plus 4.15% p.a. The term of the credit facility is 36 months and the repayment instalments are 5% after 18 months, followed by five instalments of 15% at three month intervals and a final instalment of 20%. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About Ultrasonic The Cologne-based company Ultrasonic AG is the German holding company of the Chinese ULTRASONIC Group, an established manufacturer and supplier of high-quality branded urban footwear. The Group has more than 1.400 employees and operates in three main market segments, each of which currently contributes about a third of revenue. ULTRASONIC produces sandals and slippers for the upper price segment for the local and international market. It is also a long-term supplier of shoe soles to leading manufacturers in the established Chinese sport shoe industry such as Anta, Xtep and Unisuper. Moreover, the company has developed its own very successful high-quality urban footwear collection which is marketed under the ULTRASONIC brand and targets China's young, fashion-conscious urban middle class, which has high purchasing power and expects high quality. The ULTRASONIC product line is currently marketed via more than 110 mono-label shops. For further information about the company visit: www.ultrasonic-ag.de/en For enquiries: Ultrasonic AG Chi Kwong Clifford Chan Member of the Management Board and CFO E-Mail: ir@ultrasonic-ag.de Tel.: +86 1525 947 9902 (China), +852 966 227 40 (Hong Kong) 08.08.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Ultrasonic AG c/o BPG mbH, Graf-Adolf-Platz 12 40213 Düsseldorf Germany Phone: +86 1525 947 9902 (China); +852 966 227 40 (Hong Kong) Fax: +49 (0)211 172 9829 E-mail: ir@ultrasonic-ag.de Internet: www.ultrasonic-ag.de ISIN: DE000A1KREX3 WKN: A1KREX Indices: CDAX, Classic All Share, DAXsector All Consumer, DAXsector Consumer, DAXsubsector All Clothing & Footwear, DAXsubsector Clothing & Footwear, Prime All Share Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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