Press Release: Saab Secures Short Term Funding

The new loan facility was made through Gemini Investment Fund (not to be confused with Genii Group or GEM Global Yield Fund Limited) for €30 million. This loan clears the way for production to start in a week, news that SaabsUnited broke over the weekend first.

To all those who wanted yet another apology from Victor and a new tone, I think you’ll be pleased as well. He’s working incredibly hard and doing a tough job getting Saab through this period. Congratulations to the Saab team. On to long-term financing…

Update: From Victor through email: 🙂 we never give up!

Indeed Victor, that’s why we have faith in you and your team.

_____________________

Trollhättan, Sweden: Spyker Cars N.V. (Spyker) announces that it secured the short-term funding of Saab Automobile AB (Saab Automobile) by entering into a EUR 30 million convertible loan agreement with Gemini Investment Fund Limited (Gemini).

Spyker entered into a EUR 30 million convertible loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 7% per annual and the conversion price is EUR 4.88 per share.

In addition to the receipt of EUR 30 million from Gemini, Saab Automobile will make a drawdown request to the EIB for an amount of EUR 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 EUR 59.1 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.

Victor Muller, CEO of Spyker and Chairman of Saab Automobile said: “I would like to apologize to our dedicated employees, suppliers, dealers and customers for the disruptions of the past weeks. We will do everything in our power to restore the confidence in our company as soon as practically possible.”

 

Note to Editors:

Saab, or Svenska Aeroplan Aktiebolaget (Swedish Aircraft Company), was founded in 1937 as an aircraft manufacturer and revealed its first prototype passenger car 10 years later after the formation of the Saab Car Division. In 1990, Saab Automobile AB was created as a separate company, jointly owned by the Saab Scania Group and General Motors, and became a wholly-owned GM subsidiary in 2000. In February 2010, Spyker Cars N.V. of the Netherlands, acquired the company from GM as an independently-run business.

Saab cars reflect the brand’s unique Scandinavian design ethic, which is fused with its aircraft engineering heritage. The company is a global premium car maker with a distinguished history of innovation. It is recognized for its pioneering role in turbocharging, as well as occupant safety and the introduction of flex-fuel technology through Saab BioPower. Saab Automobile AB currently employs approximately 3,800 staff in Sweden, where it operates world-class production and technical development facilities at its headquarters in Trollhättan, 70 km north of Gothenburg.

Jr.
Member
5 years 4 months ago

Great!

900 classic cab
Guest
5 years 4 months ago

🙂 Saab as some talented hard working people in management, production, marketing, you name it !

JH
Member
5 years 4 months ago

Finally! 😀
Now we hope that Mr. Antonov soon will be approved by the EIB and the Swedish Government so that the medium-term funding also will be secured. 🙂

Audun
Member
5 years 4 months ago

+1

Peter, Sweden
Member
5 years 4 months ago

I’m usually over-optimistic, but I can’t really see what is so amazingly awesome this time around — they’ve secured just another loan. I’m sorry, but I can’t see how hard it can be to borrow money? Hopefully it might be just a quick-solution until the Chinese negotiations finalizes into real Saab-money, but it could also be just another loan which will be all too hard to pay back, all too soon…

Enough negativism! Now waiting for some relief about the long-term funding!

And nonetheless — great news! Fingers crossed that I’ll own a NG9-3 in 16 months! 😀

Peter, Sweden
Member
5 years 4 months ago

And yes, VA is also in the building. I’m taking him for granted, so the medium-term financing is already done and done in my book.

BoeBoe
Member
5 years 4 months ago

Gemini = Vladimir Antonov, maybe not officially but definitly behind the scenes!

LATVIA – Gemini Investment Fund Ltd of Bahamas acquired an #.##% stake in Rigas-based Latvijas Krajbanka, from Bankas Snoras AB. Terms were not disclosed

And people from Gemini were on the board of Spyker when Antonov was still a shareholder.

Red J
Member
5 years 4 months ago

Boe
here
on page 148/149 you can see the Saab – Spyker Group ownership structure.
Gemini Investments Fund Ltd. owns 11.7% of Spyker Cars NV.

BoeBoe
Member
5 years 4 months ago

After the last share issue by Saab on March 25, 2011 it became 8,11%

http://www.afm.nl/nl/professionals/registers/alle-huidige-registers/substantiele-deelnemingen.aspx?id=11366&q=spyker

And when Gemini wants shares for their new loan they will own 27,29% of Spyker Cars NV.

ivo 71
Member
5 years 4 months ago

And here: http://www.grootaandeelhouders.nl/aandeelhouders/gemini-investment-fund you can read that Gemini IF owns 11,55% of Spyker Cars. So I guess the truth is somewhere in the middle: between 11,2 and 11,9%.

Ivo

GerritN
Member
5 years 4 months ago

It’s not hard to borrow money if there is a proper collateral. A lot of the Saab collateral is tied up with the EIB loan. I wonder what has been used for the Gemini loan.

Red J
Member
5 years 4 months ago

My left kidney. 😛

BoeBoe
Member
5 years 4 months ago

It is a convertible loan. So the loan can be paid back in shares.

JH
Member
5 years 4 months ago

It is not that easy for Saab/Spyker to get any loans at all, since no ordinary bank wants to take the risk. Also, this is a convertible loan which means that if they cannot repay in money, Gemini will get their it in shares in the company instead. As far as I know, they already own 10-15% of Spyker.

BoeBoe
Member
5 years 4 months ago

Gemini has a stake of 8,11% in Spyker. And when they convert this loan in shares they will have a stake of 27,29% in Spyker/Saab.

GerritN
Member
5 years 4 months ago

Stay of execution for 6 months. Six months is pretty short to iron out a solid long term solution. This solid long term solution has to provide the funds to pay back Gemini within those 6 months. Another 6 months hitting F5?

JH
Member
5 years 4 months ago

I don’t think it will be a problem. Discussions with a Chinese partner seems to make progress and I am pretty sure that in six months both Mr. Vladimir Antonov and some Chinese company will be shareholders and financiers of Saab through Swedish Automobile NV (which Spyker Cars NV will be renamed to on May 19th). Six months should be more than enough even for the EIB to decide on new shareholders (who apparently exists)… 😉

Bravada from GMI
Member
5 years 4 months ago
Peter is right – the GEM facility was agreed upon as a last-resort financing solution long ago, I believe back when the sale was completed. It was described in Spyker’s annual report. It is my understanding that what happened was the operational decision to draw from it. I also hope that despite all the acrimony between VA’s team and EIB, as well as suppliers asking for official debt execution, EIB will let Saab draw from their facility as well. It’s the last stretch and the endgame now. There is no more room for missteps, delays and excuses. There is no… Read more »
GerritN
Member
5 years 4 months ago

The main thing that went wrong is that the sales numbers were very disappointing. The ‘business as usual’ over the last year was mostly a continuing cranking back of sales forecasts. No criticism here, I expected that it would take a couple of years to carve out a Saab niche again. But you’re right, there is an end to plugging holes with holes, selling goods and your mother-in-law. A long term solution has to be found within the next couple of months, otherwise it’s curtain time.

Bravada from GMI
Member
5 years 4 months ago
Saab doesn’t have the few years now. Saab has been in a “niche” of 90-120K cars for years now, there’s nothing to carve here, just fill it in! Numbers didn’t go wrong, numbers don’t work for Saab clocking in and out of Trollhattan everyday. People do. And some of them surely didn’t do their homework, and it goes up from the very bottom to the very top. But you’re right, the problem is on the sales side, not the financing side. With a good few months of sales, Saab doesn’t really need any more financing. I truly mean it. And… Read more »
74StingSaab
Member
5 years 4 months ago

good news about Saab, Ill take all i can get!

Iggy
Member
5 years 4 months ago

This is of course a good news, but I am waiting for another, even better news from China! Cooperation, or even a part ownership with a Chinese company provides financial muscle for developing new 9-3 in time and brings back the confidence in SAAB, which is, I think, crucial after the PR disaster with the production stoppage.
VM and JAJ bring us some good news and do it quickly!

UWb
Member
5 years 4 months ago
This has not been on the internet yet, and it might have been addressed in other comments, but according to DI, there are two facts that affects the SAAB independence; 1. The negotiations with Great Wall is ended and are continuing with another (un-named) Chinese partner, of which is described as (even) better to work with. 2. GM has offered SAAB that if they pay back the amount they “borrowed” from GM, they would get a rebate of up to 800 MSEK. Thus, considering the collateral that SAAB possesses; * SAAB spares 5 000 MSEK * SAAB facilities 1 000… Read more »
Bravada from GMI
Member
5 years 4 months ago

Great analysis, thanks! Can somebody from the editorial team vet this please, and publish in the front page, while the rest of us could forward the link to the media et. al.?

BoeBoe
Member
5 years 4 months ago

i guess you haven’t read the Annual Report?

DUTCH900C
Member
5 years 4 months ago

I’m happy!!

Joe___
Member
5 years 4 months ago

Anything status reports on EIB:s work on accepting VA as short / mid term savior? Any comments from Srejber?

JH
Member
5 years 4 months ago

They have said that they are working on it, but they won’t tell us more until everything is finished due to banking secrecy.

SAABNUT
Member
5 years 4 months ago
It seems as the process of getting V A onboard is delayed / take so long time that other stop-gap measures have to be considered. Just the other week there were rumorours that SAAB would like to cancel the EIB loans but on terms that VA was allowed into the company as an owner and financer. And if SAAB want to change the the collateral for the already approved EIB loans, in order to free capital in a lease-rent back of their production porperties, the EIB answered by cancellation of the loan and forced repayment within 90 days. … 7%… Read more »
Joe___
Member
5 years 4 months ago

Well, according to research done by Fröberg at SvD Gemini is connected to VA so the 7% and possible converted shares goes to a good cause! Not even EIB can blame them given the situation with EIB sleeping while Saabs rear is against the wall.

SAABNUT
Member
5 years 4 months ago

Thanks – just found the SVD piece confirming the VA connection to Gemini.

A persistant man that Mr Antonov ! 🙂

This offcourse buying SAAB valuable time for a more long term solution.

So VA enters as partowner of SAAB and a possible chinese investor buys/ license
know-how and technology from SAAB – seems to be the plan B.

whoozy2002
Guest
5 years 4 months ago

i am still awaiting the arrival of the efficient streamlined independant Saab, communication via the national distribution centres has been non existent, loyal customers…potential customers are left in the dark, Australian prices are steep…[a base 9-3ss petrol is the same price as a base Freelander 2 diesel], difficult to sign that cheque….

BoeBoe
Member
5 years 4 months ago

If you wan’t to know who the shareholders are from Spyker check it here:
http://www.afm.nl/

That is the only reliable source.

zippy
Member
5 years 4 months ago

That investor needs to be found quickly as I dont think E30million is going to last long.

Sensonic
Member
5 years 4 months ago

Everybody’s (?) now happy with this short term conclusion but I sincerely hope that the employees have also received their salary and that there won’t/hasn’t been any delays with the salary payments. Even though one might be infatuated with SAAB, that’s not gonna feed the employees & their families.

MK
Member
5 years 4 months ago

You can be calm, there hasn’t been any problem with the salary.

nolltre
Member
5 years 4 months ago

On chinese partnerships: http://di.se/Artiklar/2011/5/2/234582/saabNV2-Kinesiskt-bilforetag-gor-overenskommelse-med-Saab/

Still very few details but seems like more good news.

Tim
Member
5 years 4 months ago

It all depends on the details, but it certainly looks good 🙂

SaabSouth
Member
5 years 4 months ago

Boy it takes a lot to cheer you guys up! Good news and key thing is that production is going to start up – very important!

I don’t care who owns what percetage of what – we need to get Saab up and running again , money is money!

aero
Member
5 years 4 months ago

Never heard about Hawtai Motor but I like them already. Pressconference 0830 cet tomorrow

900 classic cab
Guest
5 years 4 months ago

+1 🙂

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