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Ellex, Derling Primus, and Triniti Advise on Estonian Bond Issue and Aircraft Acquisition

Ellex, Derling Primus, and Triniti Advise on Estonian Bond Issue and Aircraft Acquisition


Ellex Raidla has advised Estonian pension fund manager LHV Varahaldus and LHV Bank on their equal subscription to and acquisition of EUR 10 million in secured notes issued by Transpordi Varahaldus, Estonia's state-owned holding company, to finance its purchase and leasing to Estonian airline Nordica of a Bombardier CRJ900 jet. Transpordi Varahaldus [TVH] was advised by Triniti, Derling Primus acted as the security agent appointed by the finance parties, and Nordica was advised by the Tark law firm.

According to Triniti, "TVH issued bonds in the amount of 10 million euros in December 2018 with an 8-year maturity .... TVH used the additional finances for the acquisition of one vintage CRJ900NG, thereby increasing the fleet of the company to seven aircraft of the same type."

Ellex Raidla reports that the new aircraft has already been employed in serving flights for the Scandinavian carrier SAS.

TVH is a state-owned company founded to operate as an investment firm, financing and managing fixed assets in the field of transport. It previously issued bonds in 2017, when securities totaling EUR 25 million in value were issued for the purchase of two CRJ900 aircraft. 

According to Ellex Raidla, the financing was unique in Estonia, "due to the fact that these are the first major aircraft finance transactions which have been subject to Estonian laws (both in respect of finance and security documents). Previous aircraft finance transactions in Estonia have been subject to foreign laws."

The Ellex Raidla team was led by Partner Ermo Kosk and Counsel Toomas Kasesalu.

The Triniti team advising Transpordi Varahaldus consisted of Partners Ergo Blumfeldt and Tonis Tamme, Senior Associates Ain Kalme and Sten Veidebaum, and Associate Sandor Elias.

The Derling Primus team was led by Managing Partner Hannes Vallikivi and included Partner Andres Siigur

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