AS Pro Kapital Grupp announces successful issue of senior secured bonds and intends to give early redemption notice of existing secured bonds

AS Pro Kapital Grupp (“Pro Kapital”) announces that the Pro Kapital’s Supervisory Council has resolved to approve the issue of new senior secured, callable, fixed rate bonds in the total amount of EUR 28.5 million, due 2024 (the “New Bonds”). Proceeds from this bond issue will be applied for a full early redemption of Pro Kapital’s outstanding bonds 2015/2020 with ISIN SE000650437 (the “Existing Bonds”).

The offering of the New Bonds is not a public offering. The New Bonds were subscribed for in full by a limited group of primarily institutional investors with expected issue date on or about 20 February. Pro Kapital will use the net proceeds from the bond issue to redeem the outstanding Existing Bonds (amounting to EUR 27.9 million) in full. Additional information with regards to the early redemption of the Existing Bonds will follow in a separate announcement.

The New Bonds (each denominated EUR 100,000) carry a fixed rate coupon of 8.00 per cent and mature in February 2024. Pro Kapital intends to apply for a listing of the New Bonds on Nasdaq Stockholm within 12 months of the issue date.

The obligations and liabilities of Pro Kapital arising from the New Bonds and related documents will be secured by the first ranking security over the following assets:

1. all shares (including rights attached thereto) in the following companies owned by Pro Kapital and its subsidiaries (including all shares issued and acquired at any time in the future) are pledged: AS Pro Kapital Eesti, OÜ Ilmarise Kvartal, Pro Halduse OÜ, AS Tondi Kvartal, OÜ Marsi Elu, OÜ Kalaranna Kvartal, Dunte Arendus OÜ, Pro Kapital Latvia JSC, “Klīversala” SIA, “Tallina nekustamie īpašumi” SIA, “NEKUSTAMO ĪPAŠUMU SABIEDRĪBA “ZVAIGZNES CENTRS”” SIA, Pro Kapital Vilnius Real Estate UAB, In Vitam UAB; PK Invest UAB, Pro Kapital Bonum UAB, Pro Kapital Germany Holdings OÜ, PK Hotel Management Services GmbH,  PRO KAPITAL Germany GmbH;
2. the Deposit account opened in connection with the Existing Bonds shall be pledged.

Pareto Securities AB acted as Sole Manager in connection with the transaction and Gernandt & Danielsson acted as legal advisor.

This information is information that AS Pro Kapital Grupp is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 19 February 2020 at 16:30 EET (15:30 CET / 14:30 UCT).