SAAB Pressrelease: Funding from NSC

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces it has received a commitment from North Street Capital, LP (North Street) on the funding of Swan and Saab Automobile AB (Saab Automobile).

The offer consists of the following transactions:

Subscription to 2,386,635 ordinary shares in the capital of Swan at a price of USD 4.19 per share for the purpose of funding the working capital of Swan, Saab Automobile and Saab Great Britain Ltd. The shares to be issued will be paid in full by Friday October 21, 2011.

Procurement of a loan to Saab Automobile in the amount of USD 60 million to be collateralized by a first lien on certain assets of Saab Automobile as well as a second lien on the collateral as pledged to NDO. This loan is subject to further documentation. The object of the parties is to finalize documentation no later than Monday

October 24, 2011 with subsequent funding within two days thereof.
Swan intends to accept this offer because it has doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011. Immediate availability of funding is necessary to continue the reorganization process of Saab Automobile.

ANA
Member
4 years 11 months ago

I guess that means $10 million by 21 Oct which buys a little more time. And hopefully an agreement in place and more cash before the creditors meeting.

skwdenyer
Member
4 years 11 months ago

Hmm, I wonder. This might be a public shot across the bows to the Chinese. I wonder what assets of Saab Automobile AB SWAN (as opposed to Saab Automobile AB) is able to offer a lien over. Presumably it can only be assets which SWAN already has some control over?

That being so, I wonder if the security is part of Phoenix, and whether this move represents an attempt at a ‘boobytrap’ strategy to make sure that the Chinese cannot get Phoenix for next-to-nothing in case they decide to try that?

Another interesting deal from VM.

ANA
Member
4 years 11 months ago

Perhaps it is Saab GB or the Saab parts business.

BoeBoe
Member
4 years 11 months ago

Pang Da already has a lien on Saab UK.
And the NDO has a lien om Saab Parts.

The only solution is a second lien (as mentioned in the press release).

ANA
Member
4 years 11 months ago

BoeBoe
To my knowledge Pang Da has not yet released loan funds to Saab/Swan, the money it has transferred to date is an advanced order for cars, so they are unlikely to have security in the form of Saab GB.

BoeBoe
Member
4 years 11 months ago

Read the semi annual report please.

It clearly states that Pang Da got Saab UK as a collateral for the money they paid to Saab for the cars they ordered

ANA
Member
4 years 11 months ago

The whole of Saab GB???

BoeBoe
Member
4 years 11 months ago
Yes, the whole of Saab GB (also Saab City). And that is not so strange. The value of Saab UK is only 22 million euro and Pang Da paid 45 million euro for the cars they ordered. As per June 2011, Saab has received pre-payment from customers amounting to €60.5 million. € 58 million of this amount relate to prepayments of cars from Chinese companies during the second quarter, whereof €45 million were received from Pang Da. These agreements stipulate that the car sales agreement can be terminated by the buyer with not less than six month notice. In the… Read more »
skwdenyer
Member
4 years 11 months ago

@ANA: yes, the shares in Saab GB were pledged to Pang Da.

ivo 71
Member
4 years 11 months ago

Or Saab Cars of North America… That is a Swan/Saab asset, isn’t it?

Ivo

mattea
Member
4 years 11 months ago

Or maby Spyker ?

BoeBoe
Member
4 years 11 months ago

The Spyker deal is a seperate deal. NSC already has a deal to buy Spyker from SWAN.

Coke is it
Member
4 years 11 months ago

Why does NSC pay 4 times the current stock price?

There must be something else behind this transaction than to be nice to Saab but anyway all money are welcome 🙂

Audun
Member
4 years 11 months ago

+1

BoeBoe
Member
4 years 11 months ago

They don’t pay 4 times the current stock price.

NSC is paying $4,19 per share (3 euro) and the share was trading around 1 euro (1.05 at the moment). So they pay 3 times the current stock price.

Coke is it
Member
4 years 11 months ago

My bad, but even 3 times the current share price is something that raises questions about the deal.

Peter, Sweden
Member
4 years 11 months ago

Does this mean that even Saab themselves are starting to doubt Youngman’s and Pangda’s intensions, or is it more about NDRC’s prrliminary decision that everyone’s waiting for? Isn’t Youngman/Pangda supposed to be as interested in the bridge funding as Saab is? Or are they not allowed to? Getting a bit confused here. I mean, how can Saab convince its partners and creditors about the future, while doubting their own businesspartners themselves?

JH
Member
4 years 11 months ago

Noone says that Saab doubts Youngman’s or Pang Da’s intentions, just that things might become a litlle delayed and they are taking actions to overcome this delay.

jouni72
Member
4 years 11 months ago

+1 I think there is no reason to overreaction

Peter, Sweden
Member
4 years 11 months ago

Right, thanks for the clarification, guys 🙂

KarlR
Member
4 years 11 months ago

I love SAAB but I think all of this has just gone a few steps to far! Time pull the plug and let everyone move one to something else! VM if you read this please let it go now, it’s embarrasing.

Ken H
Member
4 years 11 months ago

Are you Harold Camping in disguise?

JH
Member
4 years 11 months ago

So, if we have a sick patient that MIGHT not survive, should we give him a shot in the neck instead of trying to treat him and hope that he recovers?

skn
Member
4 years 11 months ago
OK – this is the first time I’ll say something this strongly worded – but KarlR, you are a moron. Keeping fighting is EXACTLY what leadership needs to do at this moment. If you can’t stand the heat, leave the room. Nobody’s requiring you to pay attention, hit F5, care, keep coming back to see what’s up, be around watching while people who are working to make their (and our) dreams live on do their hard work. Move the heck on, KarlR. Oh, and when production starts up again, be a hypocrite and come buy one of the sexiest cars… Read more »
Piet-Hein S.
Member
4 years 11 months ago

i understand KarlR’s thoughts. it feels a bit like ‘filling one (financial) hole with another one’

Belfast_Saab
Member
4 years 11 months ago

Karl, certainly it is getting more complex and confusing every week, but I cannot let go if there is still fight within Saab and VM has the eneregy, then good luck to him, I don’t want anyone to say Saab gave up.

KarlR
Member
4 years 11 months ago

I just dont think it’s fair to give people this kind of hope when it’s so uncertain. Even if they restart it’s very unlikley they will survive. 🙁

robban
Member
4 years 11 months ago

Defeatist.

ANA
Member
4 years 11 months ago

KarlR
Would you listen if a stranger told you to give up your job, sell your Saab and go to an Audi forum?

KarlR
Member
4 years 11 months ago

Sure if it comes from you! Since you are one of the people that dont give other people to have an opinion. This is mine. Time to close down now and move on. Maybe on the Audi forum people will understand that there is different angels on everything!

Coke is it
Member
4 years 11 months ago

KarlR, please move on.

ANA
Member
4 years 11 months ago

Trust me I am a strong advocate of voicing many different opinions and I respect yours.

I just asked you how you would feel if a stranger told you to do the same as you just told VM when you wrote ‘pull the plug and let everyone move one to something else!…..let it go now, it is embarrassing.’

peeceepeh
Member
4 years 11 months ago

KarlR, I so hope there will be different angels still to come to carry SAAB through these stromy waters. When they arrive, I will look at them from all different angles just to be enchanted, seeing them saving SAAB 😉

Meanwhile, I refuse to give up hope.

Chris Carrier
Member
4 years 11 months ago

“Uncertainty is the refuge of hope.”

maanders
Member
4 years 11 months ago
Karl, I can certainly understand if you think it is too late and it will not succeed. Others hold that same opinion and all opinions are open to discussion because the outcome is uncertain at this point. But I think what others are objecting to here is your call to VM and others at Saab who choose to believe there is hope and continue on to quit and give up. Just as you do not feel it is fair for others to tell you to change your opinion, it is not fair for you to tell those who are directly… Read more »
ivo 71
Member
4 years 11 months ago
It’s impossible to analyse this move without at least some inside knowledge. Anything we could write here would be nothing more than speculation pure and simple. I mean, why would NSC pay a 300% premium for the shares of Swan? I know the guy behind NSC is a friend of VM’s and a racing type as well but this kind of money surpasses the bounds of friendship. Money is money and business is business, after all. So my guess would be that this is not just a straight and simple share and loan deal. But what it is I can’t… Read more »
M.A.
Member
4 years 11 months ago

+1

ANA
Member
4 years 11 months ago

ivo 71
Agree fully. For all we know VM has sold Saab’s first-born to complete this deal.

janne eriksson
Guest
4 years 11 months ago

The thing that worries me is that every deal that has been announced so far, was never completed; we had Hawtai and also the deals with Pang Da and Youngman are rough rides. Let’s see what this one brings… Fingers crosses!

scand
Member
4 years 11 months ago

North Street capital is the same outfit supposedly buying Spyker.

/[smells rat/]

maanders
Member
4 years 11 months ago

Why? North Street is an venture capital company. If they choose to offer a loan to Saab under agreed upon conditions, why do you “smell a rat”?

jond
Member
4 years 11 months ago
As I read it (and I might have got the wrong end of the stick), the shares and loan add up to almost 70million USD. What interests me is not whether or not they trust Y/PD to come up with more bridging finance before they get the all clear from the NDRC for the long-term financing arrangements, but what is the intended purpose of the USD70m? What aspects of ‘reorganisation’ need that much money at this time? This will potentially dilute Y/PD’s interest and must surely be seen as a big negative by them, so what justifies the size of… Read more »
skwdenyer
Member
4 years 11 months ago
Well, one thought is this: how are the share prices calculated under the GEM facility? If they refer to the sale price in ANY market (not just shares traded on the public exchange), this deal could push up the share price to allow a further placement of shares to GEM. Similarly, do the same rules apply to the YM / PD investment – IIRC they’re based upon share price? VM can’t talk-up the share price by lying, but he can sell shares at a higher price to a willing participant, whose stake would then in turn be less diluted by… Read more »
Troels, Denmark
Member
4 years 11 months ago

It all looks a bit strange to me… – But I don´t know much about economical transactions.- . Hopefully there is not a hazard-game going on. Saabs future is much to important to that. And – in the longer run – also Saabs integrity and independent thinking is depending (!) on a reasonable transparent and honest economic base and structure…

obelix
Member
4 years 11 months ago

Apparently Lofalk wants to end reorganisation. Can’t find source yet, but share price is plummeting.
Trying to keep calm.

jos
Member
4 years 11 months ago

Guy Lofalk has filed for an disruption of the reorganisation according to DI.

TurboLover
Member
KarlR
Member
4 years 11 months ago

Not just me that think it’s time to give up! 🙂

Troels, Denmark
Member
4 years 11 months ago

I think that you by a mistake turned the mouth on your smiley the wrong way.

TurboLover
Member
4 years 11 months ago

It is never to late to give up, so why do it right now?

ANA
Member
4 years 11 months ago

KarlR
It seems you are right – others also think that it is time to give up. However I wonder if they give up with a smile on their face or with sadness in their hearts…. I think you have shown your true colours.

KarlR
Member
4 years 11 months ago

You made me this way since you are rude and not opened minded!!

ANA
Member
4 years 11 months ago

You have responsibility for your own actions.

ANA
Member
4 years 11 months ago

Catastrophic news………………..

BoeBoe
Member
4 years 11 months ago
Published: 16:30 CEST 20-10-2011 /Thomson Reuters /Source: Swedish Automobile N.V. /XAMS: SWAN /ISIN: NL0009816248 SWEDISH AUTOMOBILE INFORMED BY ADMINISTRATOR OF APPLICATION TO TERMINATE VOLUNTARY REORGANIZATION Zeewolde, The Netherlands, 20 October 2011 – Swedish Automobile N.V. (Swan) announces it has been informed that the administrator of the reorganization, Mr. Guy Lofalk, will apply for termination of the voluntary reorganization of Saab Automobile AB (Saab Automobile) and two subsidiaries at the Swedish court in Vanersborg. In spite of the funding commitment of North Street Capital LP which was published earlier today, the administrator who leads the reorganization, Mr. Guy Lofalk, will file… Read more »
maanders
Member
4 years 11 months ago

Well apparently when VM said all was worked out with Mr. Lofalk the other week when Saab was going to ask to have him replaced, apparently it either was not as smooth as he thought, or something else has changed. Looks like the rollercoaster is cresting the top of another hill…

Kurt Schirm
Member
4 years 11 months ago
I agree with Skwdenyer. I think this entirely has to do with the IP. If there is anything that you wouldn’t trust the Chinese with, this is it. If Youngman were to hold collateral interest in the IP for the Phoenix, which is a modular architecture that can accommodate at least 3 entire vehicle lines, for the low low price of $70M, why would they go through with the deal? With that in hand they could have easily (I’m sure) asked the NDRC to deny the deal. BAIC paid almost 3 times that amount for IP that was ready for… Read more »
v4ever
Guest
4 years 11 months ago
Again, this is BS. North Street is the product of one Wall Street dreamer who hasn’t actually got two cents to rub together. If he was genuinley interested in Saab, might the time to invest this money been… oh I don’t say a few weeks ago? It wouldn’t have made any difference to anyone if the money was in before the PangDa/Youngman deal funds came in, so why wasn’t the money paid in then? If this only to keep the lights on, why wasn’t it paid in then? Its not like Saab/SWANs situation has changed in the lase 10 days.… Read more »
scand
Member
4 years 11 months ago
What really is North Street Capital ? How long has it been in business ? how much money is under management ? I cant find any answers to the above, and the office address? well…. The address on the face of it, is swank (Greenwich, Connecticut is the center of hedgefunds etc). But, google 500 West Putnam Street, suite 400, greenwich, Ct and you find that it belongs to a virtual office company called Regus . North Street Capital’s fax number, for example is the generic Regus one. While there is nothing inherently wrong with having a virtual office, from… Read more »
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