DGAP-News: paragon endorses new counterproposal from Serone Capital

paragon endorses new counterproposal from Serone Capital

Delbrück, 9 March 2022 - paragon GmbH & Co. KGaA has received a counterproposal in the form of an amendment from Serone Capital Management LLP to the existing proposal of Hanseatische Investment GmbH regarding the prolongation of its Eurobond, which will be subject to a vote on 10 March.

The counterproposal from Serone Capital Management LLP regarding the upcoming extension of the 4.50% bond 2017/2022 (ISIN: DE000A2GSB86 / WKN: A2GSB8) supplements the counterproposal of Hanseatische Investment GmbH and has been examined in detail. Even though paragon believes that this represents the limit of what the company can afford, paragon endorses the proposal and recommends that bondholders vote in favor of it.

"Serone Capital's counterproposal represents a compromise that is still acceptable and gives the company the necessary room for maneuver while being supported by numerous investors and the company. We look forward to seeing a strong turnout at tomorrow's meeting," said paragon CEO Klaus Dieter Frers.

The proposal of Serone Capital Management LLP is based on the proposal of Hanseatische Investment GmbH and supplements it with the following elements:

- The repayment of the CHF bond cannot - except for a partial amount of 25% - be refinanced by taking out a secured loan.

- In addition to the increased interest rate, paragon shall pay a PIK (payment in kind) interest rate: paragon shall either pay 2.5% p.a. in cash to the bondholder or grant the bondholder a convertible bond in the amount of 3% p.a.

- The convertible bond shall be listed on the Open Market of the Frankfurt Stock Exchange; the interest rate should be 1.5% and the term 10 years. It can be converted into shares at the volume weighted average price (VWAP) of the last 30 days before 10 March 2022 plus a premium of 25%.

The proposals of Hanseatische Investment GmbH and Serone Capital Management LLP are available at the following link:

https://ir.paragon.ag/websites/paragon/English/3400/bondholder-resolution.html

Profile: paragon GmbH & Co. KGaA

paragon GmbH & Co. KGaA (ISIN DE0005558696), which is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange, develops, produces and distributes forward-looking solutions in the field of automotive electronics, body kinematics and e-mobility. As a market-leading direct supplier to the automotive industry, the company's portfolio includes the Electronics operating segment's innovative air-quality management, state-of-the-art display systems and connectivity solutions, and high-end acoustic systems. In the Mechanics operating segment, paragon develops and produces active mobile aerodynamic systems. In the rapidly growing automotive market for battery systems, paragon now acts independently with the Business Unit Power after the sale of the Voltabox share.

In addition to the company headquarters in Delbrück (North Rhine-Westphalia, Germany), paragon GmbH & Co. KGaA and its subsidiaries operate sites in Suhl (Thuringia, Germany), Landsberg am Lech, Nuremberg (Bavaria, Germany), St. Georgen (Baden-Württemberg, Germany), Limbach (Saarland, Germany) as well as in Kunshan (China), Bangalore (India) and Oroslavje (Croatia).

Additional information about paragon can be found at www.paragon.ag.

Capital Market & Press Contact

paragon GmbH & Co. KGaA

Mirko Wollrab
M: +49 172 830 3600
mailto: mirko.wollrab@corecoms.de
Corecoms Consulting GmbH & Co. KG
Goethestraße 29
60313 Frankfurt am Main