Südzucker International Finance expects to record the existence of a Cash Flow-Event and the cancellation on the hybrid bond remuneration payments based on Südzucker AG 2018/19 consolidated annual report
Südzucker AG issued via its hundred percent subsidiary Südzucker International Finance B.V., Oud-Beijerland, Netherlands, in 2005 an undated subordinated fixed to floating rate hybrid bond with a nominal amount of EUR 700,000,000 (ISIN XS0222524372). The hybrid bond remuneration payment is paid quarterly respectively end of March, June, September and December.
Today, Südzucker International Finance informed the hybrid bond holders that it assumes, based on today’s Südzucker publication of preliminary figures for financial year 2018/19, to record the existence of a Cash Flow-Event according to the audited consolidated annual report of Südzucker AG for the year ending on 28 February 2019.
A Cash Flow-Event exists according to the applicable Conditions of Issue if the consolidated Südzucker AG cash flow falls below five percent of consolidated revenues. Applicable are audited figures of – currently not yet published – annual report of Südzucker for financial year 2018/19. Whether a Cash Flow-Event exists will be determined a few days before the respective remuneration payment date. In case of a Cash Flow-Event in accordance to the Conditions of Issue, Südzucker International Finance is obliged in general to omit the hybrid bond remuneration for the respective remuneration payment date.
Therefore, as disclosed today by Südzucker International Finance, it assumes that the remuneration payment for the four remuneration payment dates following the publication of the Südzucker annual report will be omitted, i.e. end of June, September and December 2019 as well as end of March 2020 (http://www.suedzucker.nl/insider-information-publications).
If a Cash Flow-Event exists, will be definitely determined as of the applicable record date before the respective remuneration payment date. Südzucker International Finance will inform hybrid bond holders in time and separately before the applicable remuneration payment date if a Cash Flow-Event exists and whether a payment is provided or not.