The private placement ends up with oversubscription and the average reduction rate is 23%.
On 17 January 2014, BEST II non-standard closed-end securitisation investment fund (BEST II NSFIZ), one of the largest Polish securitisation funds specialising in investing in debt portfolios, allotted C series bonds with a total value of 40 million PLN.
BEST II NSFIZ is one of the three securitisation funds managed by BEST TFI, and the arm of the BEST Group specialising in debt acquisition and collection. The fund intends to use the funds thus acquired to purchase new debt portfolios and on the early redemption of B series bonds. B series bonds will be redeemed on 27 February 2014.
“This is the second as big a bond issue in terms of value made by a securitisation fund in the past two years on the Polish market. BEST II NSFIZ is also the first securitisation fund in Poland to opt for such a method to finance its operations. The funds raised in the issue that has just been completed will be used, among others, for an early redemption of B series bonds. The fund would have the financial means necessary for a prompt redemption of B series bonds in June 2014 but their early redemption will reduce the fund's costs of financing,” indicates Krzysztof Borusowski, President of BEST TFI.
The private placement attracted 91 individual and institutional investors. The value of their subscriptions significantly exceeded the issuance limit. Today BEST II NSFIZ has allotted 400,000 bonds worth 100 PLN each, indicating the need to reduce subscriptions at an average rate of 23%.
C series bonds are interest-bearing at a variable rate based on WIBOR 6M plus a margin of 4.3 pp. Interest will be paid every 6 months, and the maturity date was set for 17 January 2018. Although C series bonds are unsecured, the fund has committed to provide security in the future in the form of a registered pledge on its debt portfolio holdings.
The bonds will be introduced to an alternative trading system on the Catalyst market operated by the Warsaw Stock Exchange and the BondSpot.