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BEST starts with a public offering of bonds

BEST starts with a public offering of bonds

The Company has published the prospectus and the final terms of issue for K1 series bonds

  • BEST, one of the leading companies in the debt management market in Poland, will offer 4-year K1 series bonds with a total par value of 45 million PLN. It is the first series of bonds offered as part of the public issue programme for bonds having a total value of up to 300 million PLN.
  • Subscriptions for K1 series bonds will be accepted between 31 March and 11 April 2014 at the offices of mBank Brokerage House, also via remote access channels, i.e. by telephone and via the Internet.
  • Bonds will be allotted based on the order of subscriptions. If the total value of subscriptions exceeds the offering value, the subscription period may be shortened.
  • The par value and issue price of one K1 series bond is equal to 100 PLN. An investor can place a single subscription for at least 1 bond and not more than 10,000 bonds. At the same time an investor can place more than one subscription.
  • K1 series bonds are interest-bearing at a variable rate based on WIBOR 3M plus a margin of 3.8%. Interest will be paid out to investors every 3 months.

- We would like to spend the funds raised in the bond issue on further development and increasing the scale of operations of the BEST Group, primarily on new investments in non-performing debt portfolios. We will focus on the well-known domestic market of bank claims, while we hope that this year we will also purchase the first interesting mortgage portfolios. We are also looking closely at other segments of the non-performing debt market,” says Krzysztof Borusowski, President of BEST.

 

- We are one of the largest debt collection companies in Poland, with twenty years of experience and 17 years of presence on the WSE. For four years now we have also been known to investors as an issuer of bonds listed on Catalyst. To this date, BEST and the funds that it manages have issued bonds worth more than 350 million PLN, half of which has already been redeemed. The considerable dynamics of our financial performance and low debt ratios as compared to the industry average are our undoubted strengths. We believe that for investors the investment in BEST bonds will be an attractive alternative to other products, such as bank deposits,” says the President.

 

Issue parameters

Today, i.e. on 24 March 2014, the Company published a basic prospectus for a public issue programme for the bonds with a total value of up to 300 million PLN. BEST has also published the final terms of issue for K1 series bonds, which is the first issue carried out under the above-mentioned programme.

 

BEST will offer to investors 450,000 K1 series bonds with a par value of 100 PLN each. Consequently, the total par value of the issue will amount to 45 million PLN. K1 series bonds are 4-year bonds. The bonds will be interest-bearing at a variable rate based on WIBOR 3M plus a margin of 3.8%. Interest will be paid out to investors every 3 months.
The Company plans to introduce the offered bonds to trading on the regulated market operated by WSE-Catalyst.

 

 

Subscription terms and dates

The issue price of one bond is equal to its par value and amounts to 100 PLN. Investors can place subscriptions for at least 1 bond and not more than 10,000 bonds, or, in other words, for at least 100 PLN and not more than 1 million PLN. At the same time, investors can place more than one subscription, whereas the number of bonds covered by the subscriptions of one investor may not exceed 450,000, or the total of 45 million PLN.

 

Subscriptions for K1 series bonds will be accepted between 31 March and 11 April 2014 at the offices of mBank Brokerage House, also via remote access channels to the brokerage account, i.e. by telephone and via the Internet. The prerequisite for placing a subscription is having an investment account with mBank Brokerage House. Detailed information is provided by the Customer Service Offices (POKs) of mBank Brokerage House – the list available on www.mdommaklerski.pl (tab: Contact / Customer Service Offices).

 

K1 series BEST bonds will be allotted based on the order of subscriptions. The provision will be relevant in a situation where investors subscribe for a greater number of bonds than the offered pool. Then some of subscriptions will be reduced.

 

The key date here will be the day on which the number of the bonds subscribed for exceeds the offered pool (Oversubscription Day). Investors that 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.

 

For example, if on the 7th day of the subscription period, the number of bonds subscribed for exceeds the offered pool, then the investors who have placed their subscriptions during the first 6 days will acquire precisely the number of bonds that they subscribed for (100% allotment). On the other hand, subscriptions placed on the 7th and 8th day will be proportionately reduced.

 

Schedule for the public offering of BEST K1 series bonds: 

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

31 March 2014

Subscription End Date:

11 April 2014

Allotment date:

16 April 2014

Anticipated Issue Date:

30 April 2014

Anticipated date for a public announcement of the Offering results:

by 25 April 2014

Anticipated date for acceptance of the Bonds to trading:

12 May 2014

 

***

This press release is for promotional and advertising purposes only. The only legal source of information on the public offering of BEST S.A. bonds is the Basic Prospectus, which has been approved by the Polish Financial Supervision Authority (KNF) on 21 March 2014, and the Final Terms of Bond Issue. The Basic Prospectus and the Final Terms have been published electronically and are available on the Company's website at www.best.com.pl. The Bonds will not constitute a bank deposit or be covered by the deposit guarantee scheme.

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