In connection with the proposed rights offering, Ericsson has filed an amendment to the Registration Statement on Form F-3 with the United States Securities and Exchange Commission (SEC).
The filing does not represent the final Form F-3 and is subject to further amendments.
This amendment includes previously announced information including the terms and conditions of the proposed rights offering.
The amendment also contains the terms of the underwriting agreements with a group of banks, as well as generic forms of the agreements with several large shareholders.
These agreements are part of the total arrangement to fully secure the SEK 30 b. rights offering, whereby several large shareholders have agreed to purchase up to SEK 10 b. provided that the remaining SEK 20 b. is underwritten.
The underwriting agreement contains customary terms and conditions, one of which is a credit rating at or above BB by Standard & Poor's or Ba3 by Moody's until the completion of the rights offering.
These minimum credit ratings are several notches below the company's current rating. Downgrades to these levels before completion of the rights offering are considered unlikely by management. This view is supported by Moody's statement that they expect to confirm their latest rating of Ba1 after the completion of the rights offering.
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