Medartis Holding AG Successfully Places CHF 115.8 Million in Convertible Bonds

Base, Switzerland, April 4, 2024 - Medartis Holding AG ("Medartis"), a leading orthopaedic company specializing in surgery of the head and extremities, announced the successful placement of CHF 115.8 million in senior unsecured guaranteed convertible bonds due in 2031. This financial maneuver is designed to strengthen the company's financial flexibility, enabling further growth and innovation within its core business areas.

These bonds, assigned for conversion into newly issued and/or existing registered shares of Medartis, are under the guarantee of Medartis itself, with issuance executed through its wholly-owned subsidiary, Medartis International Finance SAS. Notably, the offering excluded advanced subscription rights for existing shareholders. The settlement of these bonds is scheduled for April 11, 2024, with plans for admission to trading on Frankfurt's Open Market expected within three months post-settlement. The proceeds are earmarked for general corporate funding, including potential acquisitions to enhance Medartis' market offerings.

The issuance terms outline a bond denomination of CHF 200,000 each, at 100% of their principal amount, carrying a 3.0% annual coupon, payable semi-annually. The initial conversion price is set at CHF 100.725, demonstrating a 27.5% premium over the share price in a concurrent placement aimed at facilitating market risk hedging for bond subscribers.

Medartis CFO, Dirk Kirsten, expressed optimism regarding the issuance, citing the company's strong sales growth and improved profitability in 2023 as key drivers behind this strategic financial move. This bond issuance is positioned as a step to bolster Medartis' investor base, providing the leverage needed for accelerated expansion and innovation in its product offerings.