HOCHDORF Holding AG: LIBOR transition: Interpretation of the Subsequent Fixed Interest Rate clause of 2.5% Perp. Callable Subordinated Bonds

[ Report ]

Hochdorf (pta038/09.12.2021/17:45) - Taking into account the fact that CHF LIBOR settings will discontinue at the of end of 2021 and in accordance with the recommendations issued by the National Working Group on Swiss Franc Reference Rates as well as consultation with the principal paying agent, HOCHDORF Holding Ltd ("the Issuer") announces that starting on 1st of January 2022, the "Effective Date", it will interpretate and apply the terms and conditions of its outstanding subordinated debt instruments with ISIN CH0391647986 by replacing LIBOR mid swap market rates with the compounded SARON mid swap market rates for the purpose of the calculation of the subsequent fixed interest rate in case the issuer chooses not to call the respective subordinated instrument on the first call date.

To compensate investors for the structural difference between compounded SARON and LIBOR mid swap market rates and as recommended by the National Working Group on Swiss Franc Reference Rates and assuming there is no further development on this topic, a spread adjustment in line with the ISDA 2020 IBOR Fallbacks Protocol shall be made. For the subordinated instruments listed above, such spread adjustment amounts to 0.0741% over the Subsequent Fixed Interest Rate. As of the Effective Date, such spread adjustment rate shall be included in the calculation of subsequent fixed interest rate in accordance with the prevailing terms and conditions. The initial margin remains unchanged as per the terms and conditions of the respective instrument.

The calculation of subsequent fixed interest rate is relevant only if and when the issuer chooses not to call the respective subordinated debt instrument on the first or any subsequent call date.

Please refer to the notice which is expected to be published on or around January on the Official Notices page of SIX Swiss Exchange for more information.

Security Number: 39.164.798, first call date on 21 June 2023

ISIN: CH0391647986

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