Saab Automobile secures short-term funding; production to resume
02 May 2011
Spyker Cars N.V. (Spyker) has secured the short-term funding of Saab Automobile AB (Saab Automobile) by entering into a €30-million (US$44.6 million) convertible loan agreement with Gemini Investment Fund Limited.
The loan agreement has a 6 months maturity. The interest rate of the loan is 7% per annual and the conversion price is €4.88 per share.
In addition to the receipt of €30 million from Gemini, Saab Automobile will make a drawdown request to the EIB for an amount of €29.1 million. As a result of the convertible loan and the EIB draw down—which is expected next week—Saab Automobile secured an amount of €59.1 million (US$87.9 million). With the receipt of these funds, Saab Automobile secured the liquidity that is required to restart production.
Saab Automobile aims to restart production within a week, pending agreements on delivery schedules with its suppliers. In order to improve lead times to customers and dealers on existing and future orders, Saab Automobile will work together with its suppliers to minimize any impact from the recent production stop.
Spyker and Saab Automobile continue to work on securing medium and long-term funding.
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