June 2009

Financial advisor to Skælskør Bank in connection to obtaining hybrid capital and rights issue

Following an inspection from the Danish FSA, Skælskør Bank was required within a short time frame to increase its solvency. Firstly, the bank was required to obtain hybrid core capital and then complete a rights issue.

ATRIUM acted as financial advisor to Skælskør Bank in connection with obtaining agreements to subscribe, which initially achieved DKK 52 m of hybrid core capital. Agreements were primarily obtained from high net worth individuals and companies with ties to the bank.

Subsequently, a rights issue directed at existing shareholders was completed resulting in total proceeds of DKK 63 m of which DKK 55 m was used to increase the solvency in order to meet the requirements of the Danish FSA and to qualify for funding from the state through “Bankpakke II”.

ATRIUM managed to put together a consortium of underwriters consisting of a number of local and regional banks. The underwriting was conditional upon existing shareholders supporting the bank by subscribing for at least half of the new shares, which was fulfilled.

As lead manager, we planned the offering of hybrid core capital and the rights issue and handled all dialogue and coordination with the Danish FSA and NASDAQ OMX Copenhagen. We prepared the prospectus and related announcements and materials, as well as the underwriting.