Baker McKenzie advised Cicor Technologies Ltd, Boudry ("Cicor") on its issuance of a five-year non-interest bearing mandatory convertible bond of up to CHF 60 million backstopped by One Equity Partners ("OEP").

The creation of conditional capital for the issuance of a mandatory convertible bond was approved at Cicor's extraordinary general meeting of 16 December 2021. The company issued the mandatory convertible bond in accordance with the following terms and conditions: On 3 January 2022, existing shareholders received one advance subscription right ("Rights") per existing share held. The Rights were tradeable on SIX Swiss Exchange from 3 January until 11 January 2022. Fifty-one Rights entitled the holder to subscribe for one bond with a nominal value of CHF 1,000 by 13 January 2022.

OEP has undertaken vis-à-vis Cicor to firmly underwrite the mandatory convertible bond to the extent that the Rights of the other shareholders were not exercised. As of the end of the preferential subscription period, bonds in the total nominal amount of CHF 11.923 million were subscribed by shareholders and investors by exercising preferential subscription rights. OEP acquired a share in the issued bonds corresponding to CHF 8.077 million. Consequently, bonds in the total amount of CHF 20 million have been issued and preliminary listed on SIX Swiss Exchange on 20 January 2022.

Cicor has the option to reopen the issuance of the bonds up to a total issue amount of CHF 60 million within the next 12 months, depending on its financing needs. OEP committed to underwrite further bonds up to the total issue amount during this period.

The proceeds of the offering are intended to increase Cicor's financial flexibility and strengthen its balance sheet in connection with future acquisitions.

Zürcher Kantonalbank acted as paying and conversion agent, selling agent and listing agent for the issuance.

Baker McKenzie advised Cicor Group on all legal and tax aspects of the issuance.

The Baker McKenzie Switzerland team consisted of Matthias Courvoisier (partner, capital markets), Yves Mauchle (senior associate, capital markets), associates Bettina Klein, Jan Lusti (both capital markets) and Christian Rioult (corporate) as well as tax lawyers Andrea B. Bolliger (of counsel) and Fabian Greutert (associate).

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