January 23, 2007 - Today, Infogrames announced that the 74 million Euro rights offering that the company held last December was highly successful among its shareholders. Rights holders subscribed to a total of 463,800,441 shares (94% of the offering), and subsequently applied for another 247,977,590 shares, causing the offering to be oversubscribed by almost 1.7 times.
The offering was fully subscribed by the shareholders, making it unnecessary to call in on the guarantee given by investors in the event that the issue was undersubscribed.
The result of all of this was that 493,287,990 new shares were issued with a value of 0.01 Euro each. Starting tomorrow, they will be admitted to trading, and will listed in the same line as other existing Infogrames shares.
"I wish to thank our shareholders, who have again shown their determination to be involved in their company's future. Thanks to their support, we will be able to continue our efforts to rebuild and expand our business," stated Infogrames CEO Bruno Bonnell.
Proceeds from this offering will be used on several different projects. 35.4 million Euros will be used to repay all promissory notes dating from 2005-2008 on January 24, 2007. Ten million Euros will be used to repay a portion of the short term facility and about 7 million will be allocated to fees and commissions related to the current restructuring plan. Finally, the remaining balance of 21.6 million Euros will serve to finance the company's current operations.
Furthermore, the company distributed free warrants to its shareholders, at the ratio of one free warrant for every four shares held. These warrants have been traded since January 15, and each may be exercisable for one new share at a price of 0.15 Euros any time between January 26, 2007 and December 31, 2009.
Finally, Infogrames has also confirmed that the next step in the company's debt restructuring plan will be the simplified exchange tender offer for its OCEANE 2009 bonds. This is expected to take place shortly, following the approval of the AMF.