Sorainen advised Baltic Horizon Fund, managed by Northern Horizon Capital, in issuing 5-year unsecured bonds of EUR 30 million. The bonds bear a fixed rate coupon of 4,25% to be paid quarterly. The transaction took place under private placement regime and was subscribed by Baltic institutional investors, mainly comprised of pension funds, asset managers, insurance companies and banks. The issuer will apply for listing of the bonds on Nasdaq Tallinn.
Proceeds from the bonds will be used for refinancing of loans and for general corporate purposes, including investment activities.
„At Baltic Horizon we are extremely pleased to successfully enter the Baltic bond market with this transaction,” Tarmo Karotam, fund manager of the Fund, said in a press release. “It will give the fund a long term benefit of a more diversified capital structure, which is supported by the leading regional institutional investor base. By reducing bank loan amortization payments we are increasingly able to utilize the Fund’s free cash flow for the purpose of our core activity.”
Sorainen advised the client throughout the transaction by drafting the bond documentation, providing disclosure advice, engaging a trustee to represent the interests of the bondholders and representing the client in negotiations between the parties of the transaction. The client was advised by Sorainen Estonia partner Reimo Hammerberg and senior associate Kätlin Krisak.