Core Viewpoint - Rapala VMC Corporation has issued hybrid capital securities amounting to EUR 25 million, with a fixed coupon interest of 9.000% per annum until November 27, 2028, after which a floating interest rate will apply [2][3][4]. Group 1: Capital Securities Details - The Capital Securities do not have a specified maturity date, allowing Rapala VMC to redeem them at their nominal amount on the Reset Date and subsequently on each interest payment date thereafter [2]. - The proceeds from the issuance will be used to refinance existing hybrid capital securities issued on November 29, 2023, with an initial nominal amount of EUR 30 million, as well as for general corporate purposes [6]. Group 2: Shareholder Participation - Viellard Migeon Et Compagnie Sa, Rapala VMC's largest shareholder, rolled over EUR 7.2 million of its existing holding into the new Capital Securities issue and subscribed for an additional EUR 3.1 million due to strong investor interest [3]. Group 3: Financial Position and Strategy - The issuance of Capital Securities reflects positive developments in Rapala VMC's performance and confirms the relevance of its strategic direction, as stated by the President and CEO [4]. - The Capital Securities are subordinated to other debt obligations and treated as equity in the company's consolidated financial statements under IFRS, without conferring shareholder rights or diluting current shareholders' holdings [5]. Group 4: Company Overview - Rapala VMC Group is a leading global fishing tackle company with net sales of EUR 221 million in 2024 and operates in approximately 40 countries, employing around 1,400 people [7].

Core Viewpoint - Rapala VMC Corporation is planning to issue new euro-denominated hybrid capital securities amounting to up to EUR 25 million, while also inviting holders of existing hybrid capital securities to tender them for cash as part of a proactive debt management strategy [2][4][15]. Group 1: New Capital Securities - The new capital securities will be subordinated to existing debt obligations and treated as equity in the financial statements [3]. - The issuance is subject to market conditions and is intended to refinance existing capital securities and support general corporate purposes [2][15]. - The largest shareholder, Viellard Migeon Et Compagnie Sa, will roll over EUR 7.2 million of its existing holdings into the new capital securities [5]. Group 2: Tender Offer - The tender offer invites holders of existing capital securities, initially issued with a nominal amount of EUR 30 million, to tender their securities for cash [4]. - The purchase price for the existing capital securities is set at EUR 20,700 per EUR 20,000 in principal amount [12]. - The tender offer period is expected to expire on November 24, 2025, with settlement anticipated around November 27, 2025 [14]. Group 3: Refinancing and Financial Covenants - Rapala VMC has secured EUR 91.5 million in senior secured term and revolving facilities for refinancing existing loans and general corporate purposes [8]. - Completion of the new capital securities issuance and the tender offer is a precondition for the refinancing [9]. - Financial covenants related to leverage ratios and minimum liquidity will be regularly tested [10].