Rapala considering €25m refinance plan to add cash into business

Rapala VMC Corporation has announced that it is considering a plan to refinance its business by issuing Euro-denonimated hybrid capital securities of up to €25 million.

The Finnish company, one of the industry’s big four tackle suppliers and the most recognised lure producer in the world, says the issuance may take place in the near future subject to market conditions. It says the proceeds would be used for general corporate purposes, including supporting its balance sheet and cash balance as well as improving its financial flexibility in a challenging trading environment.

At the same time, the company plans to make savings in operating expenses and optimise inventories. The move, should it go ahead, would also diversify Rapala VMC’s financing sources to capital markets. Rapala VMC’s largest shareholder, Viellard Migeon Et Compagnie Sa, has already committed €10 million to the potential issue.

Hybrid securities combine both debt and equity characteristics and allow companies to borrow money from investors. Nordea Bank Abp and OP Corporate Bank plc have been appointed to act as joint lead managers in the issue of the capital securities.