BEST has finalised book building for 5-year L1 series bonds. The final issue value has been determined at PLN 60 million, and coupon payments on these bonds will be equivalent to WIBOR 3M, plus margin of 3.6% per annum.
"Based on book building, we have decided, as part of this offering, to issue bonds with a total value of PLN 60 million, which is the biggest one-off issue in the history of BEST. Coupon payments on L1 series bonds will be equivalent to WIBOR 3M plus margin of 3.6% per annum. Therefore, the terms negotiated are comparable with the terms of the previous issue of bonds for institutional investors, i.e. K4 series bonds with coupon payments equivalent to WIBOR 3M plus 3.5% per annum. Taking into account the size of the current issue (it is three times greater than the issue of the K4 series bonds), a slightly worse market climate and the holiday period, we are satisfied with the terms negotiated", said Krzysztof Borusowski, CEO of BEST.
The public offering of the L1 series bonds is the fifth issue conducted by the company as part of the programme launched last year with a value of up to PLN 300 million, and at the same time the second issue within this programme addressed to institutional investors. "As part of the programme, which is in force until next June, we will still be able to issue up to PLN 90 million worth of bonds. Therefore, this may be another large issue for institutional investors as well as the next pool for individual investors, depending on how the market situation will develop", added theCEO.
The issue agent of L1 series bonds is mBank, acting via the brokerage house of mBank. The investors that participated in the book building will be invited to subscribe to bonds on 26 August, with bonds being allocated on the same day. The issue price of the L1 series bonds is equivalent to their nominal value, i.e. PLN 100.
BEST intends to earmark funds raised from the bond issue for further expansion of the Group, mainly for investments in debt portfolios sold by banks or offered on the secondary market.
As with the previous series of bonds issued by BEST as part of the public programme, the company plans to introduce the bonds offered within the present issue to trading on the regulated market operated by the Warsaw Stock Exchange in Catalyst.
So far, BEST and funds managed by BEST TFI have conducted bond issues with a total value of PLN 554 million, of which approx. PLN 265 million have already been redeemed. As part of the public bond issue programme with a total value of up to PLN 300 million, so far the Company has conducted three issues of retail bonds, i.e. series K1, K2 and K3 (with a total value of PLN 130 million) and an offering of K4 series bonds addressed to institutional investors (PLN 20 million). After finalising the offering of the L1 series bonds with a value of PLN 60 million, the total value of public bond issues conducted by BEST will reach PLN 210 million, which means that the programme will have been performed in 70%.
General information about BEST
BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997. It specialises in the trade and management of unpaid debts. The BEST Group invests in debt portfolios (especially in bank debt 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 a sole shareholder of BEST TFI, which obtained a permit from the Polish Financial Supervision Authority in 2008. The combination of competences concerning debt collection and the establishment and management of investment funds has enabled the concentration of all elements of the business model into a single 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 over PLN 9 billion (as of the end of Q1 2015), and the non-public assets fund BEST Capital FIZAN.
For further 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
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 website (www.best.com.pl). The bonds will not constitute a bank deposit and will not be covered by the deposit guarantee scheme.