In the second public offering to institutional investors, BEST will offer 5-year L1 series bonds with a floating rate equal to WIBOR 3M plus margin, the amount of which will be determined in the Book Building process. In terms of value, it will be the largest bond issuance in the Company’s history.
L1 series bonds will make the fifth of BEST's bond issues within the framework of its public offering programme with a value of up to PLN 300 million, which was launched in March 2014. At the same time, it will be the first issue handled on the basis of the second prospectus, approved by the Polish Financial Supervision Authority (KNF) in June. It can also turn out to be the largest bond issue in the entire history of BEST since its total par value may in fact reach PLN 100 million.
– So far, our bond issues within the public offering programme have let us acquire PLN 150 million in total. In line with our previous announcements, we have used the money to fund the development and business expansion of the BEST Group. Only in the first half of 2015, we spent more than PLN 64 million to purchase the non-performing debt portfolios from banks. In other words – three times more than in the corresponding period of 2014. We can also see some other interesting investment opportunities, not only in the banking sector but also on the secondary market, which we could complete within a short time horizon. That is why we have decided on another issue of bonds – says Krzysztof Borusowski, CEO of BEST.
– Given the date and scale of the offering, as well as the interest that the institutional investors have shown in our most recent public placement of K4 bonds, the Company and its advisors have decided that L1 series bonds will be offered to the same group of investors – adds the CEO.
The offering of L1 series bonds includes 1,000,000 bonds with a par value of PLN 100 each. The total par value of the offering may therefore amount to PLN 100 million. These are 5-year bonds with a floating rate equal to WIBOR 3M plus margin, the amount of which will be determined in the Book Building process. Interest will be paid out to investors every 3 months. The issue price of L1 series bonds will be equal to their par value. The allocation of bonds is scheduled for 26 August, and the issue date is expected to be 28 August 2015.
The Issuing Agent and the entity managing the Book Building process for L1 series bonds is mBank, acting through its Brokerage Office. Like in its earlier bond issues completed as part of the public offering programme, BEST plans to introduce its currently offered bonds to trading on the regulated market operated by the Stock Exchange as part of Catalyst.
So far, BEST and the funds managed by BEST TFI have completed bond issues with the total value of PLN 554 million, of which about PLN 265 million worth of bonds have already been redeemed. Within the framework of the public bond offering programme with a total value of up to PLN 300 million, the Company has already conducted three issues of retail bonds: K1, K2 and K3 series (with a total value of PLN 130 million) and the issue of K4 series bonds addressed to institutional investors (PLN 20 million). If all the currently offered L1 bonds are subscribed to, the total value of BEST's public offerings will reach PLN 250 million, resulting in the completion of the public offering programme in over 80%.
General information about BEST
BEST S.A. has been listed on the Warsaw Stock Exchange since 1997. The company specialises in the trading and management of non-performing receivables. The BEST Group actively invests in receivables portfolios (especially in the field of banking) with the use of securitisation funds and provides debt collection services for third parties: banks, telecommunications operators, power companies and other mass service providers.
BEST is also the sole shareholder of BEST TFI which obtained its licence to operate from the Polish Financial Supervision Authority (KNF) in 2008. The combination of expertise in the fields of debt collection and that of the establishment and management of investment funds has helped the entity to concentrate all the elements of its business model within one capital group.
Currently, BEST TFI manages four funds, including three securitisation funds: BEST I NSFIZ, BEST II NSFIZ and BEST III NSFIZ, whose assets include portfolios of receivables with a total nominal value of over PLN 9 billion (as of the end of Q1 of 2015) and the non-public assets fund BEST Capital FIZAN.
For more information, please visit www.best.com.plor contact:
phone: 22 826 74 18 / mobile 516 173 691
phone: 22 826 74 18 / mobile 514 985 845
This press release is for promotional purposes only. The only legal sources of information on public offering of BEST S.A. bonds are: the Base Prospectus, which was approved by the Polish Financial Supervision Authority (KNF) on 9 June 2015, addenda and updates to the Base Prospectus, and the Final Terms of the Bond Issue. The Base Prospectus, addenda and updates to the Base Prospectus and the Final Terms have been published and are available electronically on the Company's website (www.best.com.pl). The bonds will not constitute a bank deposit and will not be covered by the deposit guarantee scheme.