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BEST launches the retail bond offer worth PLN 40 million

This Thursday will the mark the launch of the offer of 4-year bonds of BEST with a total value of PLN 40 million, addressed to retail investors. In addition to mBank's Brokerage House, bond subscriptions will also be accepted by the Brokerage House of PKO Bank Polski. The consortium will enable the investors to choose from 47 facilities located across the country. Subscriptions can also be placed online and by phone.

 

 

"According to our strategy, we are gradually increasing the scale of operations, investing in receivables portfolios, both directly and indirectly, on the secondary market. This year we also intend to be more active on the debt trading market. This is why we are launching a new offer of bonds within our bond issue programme, which has been in progress since 2014" said Krzysztof Borusowski, CEO of BEST.

 

"This will be our fourth issue addressed to retail investors. In response to the signals we receive from investors, we wish to make it easier to subscribe to the bonds we have on offer. For that purpose, we have created a consortium to make it possible to purchase BEST'S bonds through the distribution networks of the Brokerage House of mBank and the Brokerage House of PKO Bank Polski, that is two leading brokerage houses on the Polish market. We expect the attractive terms and greater availability of the bonds to attract considerable interest of investors," Krzysztof Borusowski added.

 

4-year bonds with variable interest

 

According to the final issue terms for class L2 bonds, BEST will offer retail investors 400,000 bonds of par value PLN 100 each. Consequently, the total par value of the issue may amount to PLN 40 million.

 

Class L2 bonds are 4-year bonds. They will bear interest at a variable rate, equalling WIBOR 3M plus an annual margin of 3.8%. Interest will be paid to investors every 3 months.

 

BEST expects class L2 bonds to debut on Catalyst on 18 March this year.

 


 

Issue price with a discount

 

The issue price of class L2 bonds will include a discount in respect of the par value, the value of the discount depending on the day of subscription. The earlier an investor subscribes, the lower the price they will pay. This mechanism has been successfully used with the previous issue of BEST'S bonds addressed to retail investors (class K3). Moreover, the interest is accrued on the bonds as of 19 February 2016, i.e. as of the allotment date. These solutions completely eliminate the consequences of a non-interest period, i.e. the period between the subscription and the issue date.

 

Subscription date

Issue price of class L2 bonds (PLN)

4 February 2016

99.77

5 February 2016

99.79

6 February 2016

99.80

7 February 2016

99.82

8 February 2016

99.83

9 February 2016

99.85

10 February 2016

99.86

11 February 2016

99.88

12 February 2016

99.89

13 February 2016

99.91

14 February 2016

99.92

15 February 2016

99.94

16 February 2016

99.95

17 February 2016

99.97

 

Bonds easily available across the country

 

Subscriptions to class L2 bonds will be accepted from 4 to 17 February this year. As promised, a consortium of brokerage houses has been created for the issue of class L2 bonds to make it easier for investors nationwide to participate in the offering. It will be possible to acquire BEST'S bonds through the distribution networks of the Brokerage House of mBank (Offerer) and the Brokerage House of PKO Bank Polski (consortium member). Thus, the bonds will be available from 47 customer service points across the country. Investors can also subscribe via remote access channels, i.e. by phone or online.

 

Investors with an account in any brokerage house can also participate in the bonds offering.

 

To receive more information about subscriptions and the list of customer service points of the Brokerage House of mBank and the Brokerage House of PKO Bank Polski, visit www.mdm.pl and www.dm.pkobp.pl respectively, as well as www.best.com.pl.

 

The order of subscriptions matters

 

The subscription date will be taken into consideration not only while establishing the issue price to be paid by an investor for class L2 bonds. Bonds will also be allotted based on the order of subscriptions. This will be relevant in a situation where investors subscribe to a greater number of bonds than the offered pool. In this case, some subscriptions will be reduced.

 

The key date here will be the day on which the number of the bonds subscribed to exceeds the offered pool (Oversubscription Day). Investors who place their subscriptions before that day will be allotted the bonds in accordance with their subscriptions. In contrast, the subscriptions placed after the Oversubscription Day and on the next working day will be proportionately reduced. If this is the case, the subscription period may be shortened, which will be communicated by the Company in a relevant current report.

 

Schedule for the public offering of BEST'S class L2 bonds:

 

The start day for accepting subscriptions (“Subscription Start Date”):

4 February 2016

Subscription End Date:

17 February 2016

Allotment date:

19 February 2016

Anticipated Issue Date:

4 March 2016

Anticipated date for public announcement of the Offering results:

as of 19 February 2016

Anticipated date of the Bonds being admitted to trading:

18 March 2016

 

The public offering of class L2 bonds is the sixth issue conducted by BEST under the public issue programme for bonds of a total par value of up to PLN 300 million. Within this program, the Company has hitherto conducted two issues of a total par value of PLN 210 million, where three classes for a total of PLN 130 million were addressed to retail investors. All the bonds issued under the programme are listed by Catalyst.

 

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General information about BEST

 

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in receivables portfolios (primarily in bank receivables portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

 

BEST is also the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in establishment and management of investment funds has made it possible to concentrate all the elements of the business model within one capital group.

 

The total nominal value of own debt and the debt of other entities managed by BEST is over PLN 10 billion (as at 30 September 2015).

 

In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.

 

For further information, visit www.best.com.pl, or contact us at:

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 22 826 74 18 / mobile 514 985 845

e-mail: mszczepaniak@nbs.com.pl

 

You can also follow BEST Group on Twitter: https://twitter.com/BEST_Grupa

 

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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 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.

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