Sorainen has advised Baltic Horizon Fund, managed by Northern Horizon Capital, on its issuance of EUR 30 million in five-year unsecured bonds.
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 to list the bonds on Nasdaq Tallinn.
Proceeds from the bonds will be used for refinancing of loans and for general corporate purposes, including investment activities.
Baltic Horizon Fund Manager Tarmo Karotam explained that, “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.”
The Sorainen Estonia team consisted of Partner Reimo Hammerberg and Senior Associate Katlin Hein.