Next to the current offering of K3 series bonds addressed to retail investors, BEST also intends to conduct a public offering of K4 series bonds, inviting institutional investors to participate. The K4 series includes 5-year bonds bearing variable interest equivalent to 3M WIBOR increased by a 3.5% annual margin.
The issue of K4 series bonds will be the fourth conducted by BEST under a public bond issue program launched in March 2014, and at the same time the first one under this program addressed to institutional investors.
"Our bondholders already include institutional investors. They were the main addressee of private placements of BEST bonds in 2011–2013. Meanwhile, the launch of a public bond issue program in 2014 was first of all a response to the interest in the company's bonds among retail investors", said Krzysztof Borusowski, President of BEST. "Our first bond issues under the program, that is, the K1 and K2 series, met with huge interest among retail investors; therefore, we addressed the current offering of K3 series bonds to this group of investors too. At the same time we observe interest in our bonds among institutions, hence the decision to conduct an offering of K4 series bonds", added Krzysztof Borusowski.
The offering of K4 series bonds comprises 200,000 bonds with a nominal value of PLN 100 each. Therefore, the total value of the offering will be PLN 20 million. These are 5-year bonds bearing variable interest equivalent to 3M WIBOR increased by an 3.5% annual margin. Interest will be paid to investors every 3 months. The issue price of K4 series bonds will be determined on the basis of book building. Bonds are scheduled for issue on 6 March 2015.
Similarly to the issue of K3 series bonds, BEST intends to earmark funds raised from the offering of K4 series bonds mainly for investments in portfolios of irregular claims, potential acquisitions of entities from the sector as well as potentially refinancing the current debt.
So far BEST and funds managed by BEST TFI have conducted bond issues totalling PLN 457 million, of which PLN 214 million have already been redeemed. Under the public bond issue program with a total value of PLN 300 million, the company has so far conducted two issues of retail bonds, i.e. K1 series (worth PLN 45 million) and K2 (PLN 50 million). Meanwhile, the nominal value of the offering of K3 series bonds is PLN 35 million and subscriptions are being taken until Friday, 20 February. Assuming that all K3 and K4 series bonds offered are subscribed for by investors, the public bond issue program will reach its halfway point (PLN 150 million).
This press release is for promotional purposes only. The Primary Prospect (original Polish name: “Prospekt podstawowy”), as approved by Polish Financial Supervision Authority on 21 March 2014, its possible annexes and update announcements, and Final Bond Issue Conditions (original Polish name: “Ostateczne Warunki emisji Obligacji”) are the only legal sources for information on the public bond offering by BEST S.A. The Primary Prospect, its possible annexes and update announcements, and Final Bond Issue Conditions have been electronically published on the company’s website (www.best.com.pl). Bonds shall not constitute a bank deposit and shall not be included in any deposit guarantee scheme.
BEST: Company Overview
BEST S.A. has been listed on the Warsaw Stock Exchange since 1997, as a company specialising in the trading and managing of non-performing debts. The BEST Group actively invests in debt portfolios (especially in the field of banking) with the use of securitisation funds, as well as providing debt collection services for third parties: banks, telecommunication 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 claims with a total nominal value of PLN 8.8 billion (as of the end of 2014) and non-public assets fund BEST Capital FIZAN.
For more information visit www.best.com.pl or contact:
tel: 22 826 74 18 / mobile: 516 173 691
tel: 22 826 74 18 / mobile: 514 985 845