Investor Meetings and Bond Amendment
B2Holding ASA ("B2Holding" or the "Company") has mandated DNB Markets and Nordea as Global Coordinators and Joint Bookrunners and Swedbank and Arctic Securities as Joint Bookrunners to arrange a series of fixed income investor meetings commencing on Monday 6 May 2019. A minimum EUR 200 million senior unsecured publicly rated bond issue ("B2H05") with expected rating of BB- / B1 and five year tenor may follow, subject to inter alia market conditions. B2Holding has a corporate family rating of Ba3 (Stable) by Moody's and an issuer credit rating of BB- (Stable) by S&P.
With reference to the Summons to Bondholders Meeting announced Monday 6 May 2019, B2Holding, has mandated DNB Markets and Nordea as financial advisers in connection with the proposed amendments in the Company's outstanding senior unsecured bonds B2H01 (ISIN NO0010753072) and B2H02 (ISIN NO0010775166). Implementation of the proposals will be conditional upon successful placement of a new bond issue. The new bond issue will in turn be subject to the approval of the proposed amendments by the bondholders in both B2H01 and B2H02, provided, however, that the Company may in its sole discretion waive such condition in respect of B2H01 and/or B2H02.
B2Holding will offer a buy-back of B2H01 and B2H02 bonds conditional upon subscription into B2H05 in connection with the potential transaction.
Trading Update
In connection with the upcoming investor meetings, and possible bond issue, the Company is hereby releasing a trading update based on preliminary financial information for the first quarter of 2019 (comparable figures for Q1 2018 in brackets).
Gross cash collection of NOK 1,248 million (NOK 775 million)
- up 61% y-o-y
Portfolio purchases of NOK 570 million (NOK 1,485 million)
- down 62% y-o-y
Total gross ERC at end of quarter of NOK 21,434 million (NOK 18,153 million)
- up 18% y-o-y
Leverage Ratio at end of quarter at 3.0x (3.4x)
B2Holding experienced record-strong cash collection and operational costs were in line with expectations in Q1 2019. The Company acquired portfolios for NOK 570 million during the quarter with an overweight in Northern Europe (70%) and Poland (16%). Over the last 12 months, B2Holding has acquired portfolios for approx. NOK 5.5 billion (up 4% y-o-y) and grown the total gross ERC to approx. NOK 21.4 billion (up 18% y-o-y). The leverage ratio has decreased from 3.5x to 3.0x during Q1-2019 and we expect it to drop below 3.0x in Q2-2019 and stabilise there in the foreseen future. The Company continues to see strong momentum in its main markets and a good current pipeline.
B2Holding has agreed with the syndicated banks an extended maturity of its revolving credit facility to 31 May 2022, but with a springing maturity on 31 March 2021 if the aggregate principal amount remaining outstanding under B2H01 and B2H02 by that date is not less or equal to EUR 175 million. The amendments to the revolving credit facility will be completed upon fulfilment of certain conditions precedent.
B2Holding has NOK 1.4 billion available for investments at the end of first quarter. The additional proceeds from a new bond issue will increase the investment capacity accordingly.
For further information, please contact:
Erik J. Johnsen
CFO, B2Holding ASA
Telephone: +47 415 77 055
E-mail: ejj@b2holding.no
Attachments:
NO0010753072_SB_20190506
NO0010775166_SB_20190506
