ZEEWOLDE, The Netherlands (8 February, 2010) - Spyker Cars N.V. announces today that Spyker has entered into a USD 25 million convertible loan agreement with an investment company owned by Heerema Holding Company Inc.
The USD 25 million loan has a 2 year term, an interest of Euribor + 10% and is convertible into shares at EUR 4 each. This loan secures the funding necessary to close the Saab transaction as the first USD 25 million has already been paid to GM on January 26, 2010. The convertible loan is conditional on SAAB receiving the EIB loan. On July 15 of this year a final payment of USD 24 million is due to GM. Spyker is confident that it will secure the funding for this second installment.
The European Commission approved the Swedish state guarantee for Saab. With respect to the approval of the Swedish state guarantee, competition commissioner Neelie Kroes said: "The state guarantee will contribute to the implementation of Saab's business plan without giving rise to any undue distortions of competition".
Victor Muller, Spyker's CEO said: "We are delighted that Heerema has decided to become an investor in our company. I had the privilege to work for Pieter Heerema from 1984 through 1991, initially as his counsel, later as Director of Corporate Affairs, and we have come to know each other very well as a result. It is the intention to nominate a representative of Heerema as a member of the Supervisory Board".
"The positive decision of the European Commission to approve the Swedish state guarantee is another major step towards closing of the Saab acquisition. We are grateful to the Commission of their willingness to work so hard on this decision within the limited time available."
Pieter Heerema added: "Although providing convertible loans such as this one is not in the ordinary course of our business, the positive developments of the past few months involving the SAAB brand and its sympathetic connotation, together with the worldwide support of loyal customers, dealers, employees, suppliers and other stakeholders represents a unique value. This value represents much more than money alone. We are confident that when the company's management gets the opportunity to implement the business plan we will see a good financial return on our investment as well".
Good to hear that Victor and Pieter Heerema are friends, and nice to hear that SU and the campaigns played part in this decision too!
The Heerema Group of companies designs, fabricates, transports, installs and removes facilities for the exploitation of oil and gas at sea. For six decades, we have been serving the world’s leading energy firms and national oil companies in the North Sea, the Gulf of Mexico, West Africa, the Far East and Brazil.
The organization of the Heerema Group comprises Heerema Marine Contractors (HMC) and Heerema Fabrication Group (HFG). Individually, these companies work at the forefront of their industries, helping their clients to safely operate at greater depths and in tougher environments. Together, they exchange expertise and talent, and co-operate on complex projects. We operate around the world and employ more than 2,000 people.
Historically we have always been at the forefront and our ambition is to maintain that position. Our longevity is the result of long-term investments in people, knowledge and equipment. The industry will continue to grow for decades to come. New frontiers are opening up. Our clients need us to take them beyond 3,000 meters. And into the Arctic, with its unique engineering and environmental challenges. There is much left to explore.
The Heerema Group is a privately-owned company with a steady, long term focus. We are investing in state-of-the-art construction and pipe-lay vessels, our fabrication facilities and the development of new technology. We offer our people a place they want to belong to. And we manage our reputation carefully. We avoid short-term gains that hurt our reputation, we invest in principles that last for decades in a responsible manner.
We help our clients around the world and have offices in the areas that matter to our industry.
3 x Houzee!
The whole offshore oil thing, while not totally PC is at least stable for the time being. Hopefully Saab will get some green cred going for it in the meantime anyway. Nice unrelenting coverage Steven. :-) You're getting these faster than any news feed could. This is the go-to place for Saab news.
Add that to all the other expensive loans and Saab better start making money fast! If things go according to plan and Saab looks to make money soon I suppose Victor can refinance at better terms. If not - then it's praying time again.
Victor Up!
the problem is also that the euro has lost much worth in the last month, because of the problem of the rising deficits of some countries in the euro zone
Saab Up!
Of note also are some additional quotes from their website (as per @Perry);
“Our longevity is the result of long-term investments in people, knowledge and equipment... The Heerema Group is a privately-owned company with a steady, long term focus...We offer our people a place they want to belong to. And we manage our reputation carefully. We avoid short-term gains that hurt our reputation, we invest in principles that last for decades in a responsible manner”.
Precisely the sort of shareholder and values driven company that Saab Spyker need. The Dutch are certainly thinking outside the box. How very refreshing. How very Saaby.
You're right of course. Let me rephrase that... I didn't mean to be negative.
The fact that Victor continues to find funding from a variety of sources is actually very good news. And Heerema certainly makes me less nervous than that GEM fund. So, yes, it is good news.
And Saab/Spyker isn't exactly credit worthy in its current shape so this type of terms (expensive) is what can be expected for now. Let's hope he manages to follow the business plan closely enough so that he can refinance the company later, at better terms.
Another point of interest: Victor's share of the company will get much smaller if all those convertible loans eventually turn into equity rather than repaid in cash. That makes his own personal financial situation interesting. His own funding would then be secured against a smaller part of the company. To pay back his own loans from company dividend will be a challenge. (Having said that, we know absolutely nothing about his personal loan terms or even who the funders are).
But on the whole: Victor continues to pull rabbits out of his hat, time after time. That's encouraging for the future, even if the company structure looks a bit fragile.
for sure, for sure....
Let´s wait for the media shredding of this... They will never end... too sad..
It must be Euribor X 1,10 and not Euribor + 100 basicpoints. Not a real bad deal on interest.
So I think SAAB-Spyker will pay more than 10% interest.
But I don't care that much about it.
-----------------------------
Still waiting for the EIB-decision.
It isn't the first time Pieter Heerema has helped VM to get into a saddle. VM's first major killing (in money terms, I have no knowledge of other types ;-) ) was when he, together with a few others, bought the ailing ocean towing and salvage company Wijsmuller, turned it around and sold it again at a nice profit. The seller was...the Heerema holding.
The Heerema group is a solid and irreproachable business entity and quite prominent in the offshore world. Can't imagine the media finding any serious cause to write Heerema down as they -well, some..- did/do with the GEM fund which imo doesn't really deserve such a heavy barrage of criticism either.
Ivo
http://www.e24.se/business/verkstadsindustri/spyker-stiger-efter-nyhet-om-lan_1850013.e24
THIS MORNING AFTER SECURING THE 25 MILLION USD LOAN FROM HEREEMA HOLDING Co Inc
Think we have to include Hereema Holding in our wellwishes from now on. Victor Muller have worked for them earlier I read yesterday. They have trust in Victor Muller, they have trust in SAAB.
So HEREEMA HOLDING IS NOW PART OF THE SAAB FAMILY
THANK YOU HEREEMA HOLDING- DANK U WEL (dutch thanks)
http://uk.reuters.com/article/idUKLDE6180LC20100209
SAAB,SPYKER,VICTOR M,HEREEMA HOLDING - UP
GET READY TROLLHATTAN, GET READY WORLD
- SAAB IS MOVING FORWARD
"SAAB - WITH A SOUL OF IT'S OWN"
In addition, a 11 billion EUR development program shall start which shall be financed by Opel themselves.
The profit shall come in 2012 with a break-even in 2011 [some similarities with SAAB??]. See link below (in Swedish);
http://www.e24.se/business/verkstadsindustri/opel-bantar-med-8-300-anstallda_1850841.e24
A simple comparison with SAAB, Opel will then be 10 times larger than SAAB in employees, they will invest 10 times more in the development program and they will loan 10 times more than SAAB.
I wonder if they will be 10 times more successful than SAAB as well [I doubt - in the latest issue of AMS in Sweden, Fredik Huldt claims that the new Opel Insignia lacks soul of which SAAB has plenty of].
Time for: Gear up. Flaps up, Ready to fly.
Auto pilot OFF please Victor. Steer hard mate.
95 and 94x SOON - cash flow!
FLY SAAB, FLY FAST!
If "Euribor +10%" would mean the base interest plus a 10% addition to the interest level (i.e. approx 1.35%) this would be a novel way of describing interest. I would be very happy if this was the case - then the loan would be VERY favourable, far below market rates. I don't believe that's the case though.
My point was that Euribor +10% means 10 percentage points above Euribor. Right now approx 11.227%.
This is the established way to describe interest in an agreement of this type. Anything else would be a novel way of describing interest.
Expensive, yes, but in Saab-Spyker's current situation this is probably the type of terms that can be expected.
Ivo
Is SAAB-Spyker still waiting for the EIB loan approval?
I'm asking because I'm somehow confused about that, and after browsing on the EIB site, I'm even more confused.
http://www.eib.org/projects/pipeline/2009/20090300.htm?lang=-en
http://www.eib.org/projects/press/2009/2009-207-eib-board-approves-further-eur-600m-in-loans-for-the-automotive-industry.htm?lang=-en
Those are the only documents at the EIB site with reference about SAAB, both say that on the 21. of October of 2009 the € 400m loan for SAAB has been approval, no word about a draw-back of that decision because of K'segg stepping back.
Am I waiting for a new EIB announcement in vain?
http://di.se/Avdelningar/Artikel.aspx?stat=0&ArticleID=2010%5c02%5c09%5c370154&SectionId=BilMotor&menusection=BilMotor;BilMotornyheter
The deal will protect as well against all sorts of violent trade in shares by short term thinking investors with little interest in the long term future of Saab. Regarding the oil and gas link; companies working in this field are aware of the future and know that participating in development of fuel efficient engine technology and new sources of energy is in their own interest for survival of energy based companies in the future. Even when sea bound drilling riggs would become obsolete because of dried up oil wells, the structures in itself can possibly have a second life as fundaments for wind turbines or anchoring stations for tidal energy plants. The Dutch have developed many industries and technological innovation out of their continuous struggle with water and the seas, teaming up with the out-of-the-box thinking engineers from Saab can give very interesting future technology.....