#Sweden #Kista #Sivers Semiconductors #Debt Refinancing #Bootstrap Europe

Sivers Semiconductors Strengthens Its Financial Backbone Through Strategic Refinancing

Sivers Semiconductors AB, a prominent player in the realm of photonics and wireless technology, has announced a significant development in its financial strategy. The company recently completed the refinancing of all its existing external debt facilities, entering into a robust agreement with Bootstrap Europe 4.0 S.à r.l. This Luxembourg-based financing provider specializes in venture and growth financing, and this move is set to bolster Sivers Semiconductors' capital structure as it plans for future growth.

The newly established loan facility totals USD 17,000,000, and its proceeds are earmarked not only for refinancing existing debts owed to Bootstrap Europe and Scottish Enterprise but also for general corporate purposes. This strategic refinancing consolidates Sivers' financial obligations into a simplified and more manageable debt structure.

Loan Facility Details

The refinancing consists of two key components:
1. Term Loan: A fixed-rate secured term loan worth USD 5,000,000 that carries an interest rate of 12% per annum. This term loan has a maturity date set for 36 months following the agreement. It features an initial six-month interest-only payment period, after which principal repayments will commence, concluding with a maturity fee of USD 350,000 due at the term's end.
2. Convertible Loan: This component comprises a larger sum of USD 12,000,000, with a slightly lower fixed interest rate of 10.85% per annum. The maturity date is fixed for December 31, 2029. The lender has the option—but not the obligation—to convert any part of the outstanding principal into ordinary shares, with a predetermined conversion price of SEK 4.77 per share. This flexibility allows the lender to engage with the company’s equity at an advantageous time, benefiting both parties.

The convertible loan also includes a twelve-month interest-only payment period, after which regular installments will kick in, ensuring a smooth repayment trajectory without straining the company’s cash flow.

Security and Guarantees

To reinforce the Loan Facility, Sivers Semiconductors has granted a comprehensive security package, which includes:

• - Share pledges over significant subsidiaries.
• - Account pledges on designated bank accounts.
• - Pledges related to intellectual property rights, covering patents and trademarks.
• - Floating charges on assets across some of its group companies, alongside customary U.S. security documentation for its U.S. subsidiary.

Additionally, the Loan Facility is reinforced by guarantees from Sivers Wireless AB, Sivers Photonics Ltd, and Sivers Semiconductors Inc., ensuring a robust safety net for all parties involved in the financing agreement.

Looking Ahead

This strategic refinancing is not merely about immediate financial relief; it's a proactive measure aimed at positioning Sivers Semiconductors for future success. With a new and consolidated debt structure, the company is better equipped to pursue opportunities in key markets, such as AI data centers, SATCOM, defense, and telecommunications, thus fostering a greener data economy.

The integration of Bootstrap Europe's tailored financing solutions underscores the growing relationship between innovative companies and specialized lenders that facilitate the scaling of high-growth industries.

For further inquiries, media representatives can reach out to Tyler Weiland from Shelton Group or CEO Heine Thorsgaard for detailed financial insights or operational queries concerning this refinancing agreement.

As Sivers Semiconductors continues to drive forward in the high-tech innovation landscape, this refinancing signifies a strategic pivot aimed at not just overcoming current challenges but also seizing future growth opportunities—a clear indication of the company's resilience and foresight in a competitive industry.