KONGSBERG GRUPPEN ASA (A Public Limited Liability Company Incorporated Under the Laws of Norway)
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LISTING PROSPECTUS KONGSBERG GRUPPEN ASA (a public limited liability company incorporated under the laws of Norway) Listing of FRN Kongsberg Gruppen ASA Senior Unsecured Open Bond Issue 2018/2021 ISIN NO 0010837586 and FRN Kongsberg Gruppen ASA Senior Unsecured Open Bond Issue 2018/2024 ISIN NO 0010837602 The information in this prospectus (the "Prospectus") relates to, and has been prepared in connection with the listing on Oslo Børs, a stock exchange operated by Oslo Børs ASA (the "Oslo Stock Exchange"), of (i) the FRN senior unsecured bonds 2018/2021 with ISIN NO 0010837586 and (ii) the FRN senior unsecured bonds 2018/2024 with ISIN NO 0010837602 (together the "Bonds") issued by Kongsberg Gruppen ASA ("Kongsberg Gruppen", the "Issuer" or the "Company" and together with its subsidiaries the "Group" or "Kongsberg") on 6 December 2018 pursuant to the bond agreements dated 3 December 2018 (the "Bond Agreements") between the Issuer and Nordic Trustee AS (the "Bond Trustee" or "Trustee") (the "Bond Issue"). This Prospectus does not constitute an offer to buy, subscribe for or sell the securities described herein. This Prospectus serves as a listing prospectus as required by applicable laws and no securities are being offered or sold pursuant to this Prospectus. Investing in the Issuer and the Bonds involves a high degree of risk. Prospective investors should read the entire document and, in particular, consider Section 1 "Risk factors" below when considering an investment in the Issuer. Managers Arctic Securities AS Nordea Bank Abp, filial i Norge The date of this Prospectus is 20 March 2019 Kongsberg Gruppen ASA - Prospectus IMPORTANT INFORMATION This Prospectus has been prepared by the Issuer solely in connection with the listing on the Oslo Stock Exchange of the Bonds (the "Listing"). The Financial Supervisory Authority of Norway (Nw.: Finanstilsynet) (the "NFSA") has reviewed and approved this Prospectus in accordance with Sections 7-7 and 7-8 of the Norwegian Securities Trading Act of 29 June 2007 no. 75 (Nw. Verdipapirhandelloven), as amended (the "Norwegian Securities Trading Act"). The Prospectus was approved by the NFSA on 20 March 2019. The NFSA has not checked or approved the accuracy or completeness of the information included in this Prospectus. The approval by the NFSA only relates to the information included in accordance with pre-defined disclosure requirements. The NFSA has not conducted any form of review or approval relating to corporate matters described in or referred to in this Prospectus. This Prospectus has been prepared in accordance with the Norwegian Securities Trading Act and the bond rules issued by Oslo Stock Exchange and comprises, inter alia, the information requested in (i) the checklist for registration documents applicable to debt and derivative securities with a denomination per unit of at least EUR 100 000 (Annex IX) and (ii) the checklist for securities documents (Annex XIII). For definitions of certain other terms used throughout this Prospectus, see Section 10 "Definitions and glossary". The information contained herein is current as at the date hereof and subject to change, completion and amendment without notice. In accordance with Section 7-15 of the Norwegian Securities Trading Act, significant new factors, or material mistakes or inaccuracies relating to the information included in this Prospectus, which are capable of affecting the assessment by investors of the Bonds between the time of approval of this Prospectus by the NFSA and the listing of the Bonds on the Oslo Stock Exchange, will be included in a supplement to this Prospectus. Neither the publication nor distribution of this Prospectus shall under any circumstances imply that there has been no change in the Group's affairs or that the information herein is correct as at any date subsequent to the date of this Prospectus. No person is or has been authorized by the Company to give any information or to make any representation not contained in or not consistent with this Prospectus or any other information supplied in connection with the Bonds, and if given or made, such information or representation must not be relied upon as having been authorized by the Company. The distribution of this Prospectus in certain jurisdictions may be restricted by law. This Prospectus does not constitute an offer of, or an invitation to purchase, any of the Bonds in any jurisdiction. This Prospectus may not be distributed or published in any jurisdiction except under circumstances that will result in compliance with applicable laws and regulations. Persons in possession of this Prospectus are required to inform themselves of and observe any such restrictions. In addition, the Bonds may be subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable securities laws and regulations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. This Prospectus is not an offer to sell nor a request to buy bonds. The content of this Prospectus is not to be construed as legal, credit, business or tax advice. Each investor should consult its own legal, credit, business or tax adviser as to a legal, credit, business or tax advice. In making an investment decision, investors must rely on their own examination of the Group and the Bonds, including the merits and risks involved. This Prospectus shall be governed by and construed in accordance with Norwegian law. The courts of Norway, with Oslo District Court as legal venue, shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with this Prospectus. ii Kongsberg Gruppen ASA - Prospectus TABLE OF CONTENTS 1 RISK FACTORS ................................................................................................................................ 2 2 RESPONSIBILITY FOR THE PROSPECTUS ........................................................................................... 22 3 GENERAL INFORMATION ................................................................................................................. 23 4 BUSINESS OF THE GROUP ............................................................................................................... 25 5 FINANCIAL AND OTHER INFORMATION ............................................................................................. 34 6 BOARD OF DIRECTORS AND MANAGEMENT ....................................................................................... 35 7 CORPORATE INFORMATION AND DESCRIPTION OF THE SHARE CAPITAL ............................................... 39 8 DESCRIPTION OF THE BONDS ......................................................................................................... 42 9 ADDITIONAL INFORMATION ............................................................................................................ 50 10 DEFINITIONS AND GLOSSARY ......................................................................................................... 51 APPENDICES APPENDIX A ARTICLES OF ASSOCIATION OF KONGSBERG GRUPPEN ASA ............................................................... A1 APPENDIX B BOND AGREEMENTS FOR THE BONDS DATED 3 DECEMBER 2018 ......................................................... B1 1 Kongsberg Gruppen ASA - Prospectus 1 RISK FACTORS An investment in the Bonds involves inherent risk. Before making an investment decision, investors should carefully consider the risk factors and all information contained in this Prospectus, including the Financial Information and related notes. The risks and uncertainties described in this Section 1 are the principal known risks and uncertainties faced by the Group as of the date hereof that the Company believes are the material risks relevant to an investment in the Bonds. An investment in the Bonds is suitable only for investors who understand the risks associated with this type of investment and who can afford to lose all or part of their investment. The absence of negative past experience associated with a given risk factor does not mean that the risks and uncertainties described herein should not be considered prior to making an investment decision in respect of the Bonds. If any of the following risks were to materialise, individually or together with other circumstances, it may cause inability of the Issuer to pay interest, principal or other amounts on or in connection with the Bonds. Each potential investor in the Bonds must determine the suitability of that investment in light of its own circumstances. In particular, each potential investor should: (i) have sufficient knowledge and experience to make a meaningful evaluations of the Bonds, merits and risks of investing in the Bonds and the information contained in this Prospectus or any applicable supplement; (ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation, an investment in the relevant Bonds and the impact such investment will have on its overall investment portfolio; (iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in the Bonds; (iv) understand thoroughly the terms of the Bonds and the behavior of any relevant financial markets; and (v) be able to evaluate (either alone or with the assistance of financial advisors) possible scenarios for economic, interest rate and other factors that may affect its investment decision and its ability to bear