B2Holding ASA - Fixed income investor meetings, corporate ratings and trading update

Fixed income meetings
B2Holding ASA ("B2H") has mandated DNB Markets, Nordea and Swedbank to arrange a series of fixed income investor meetings commencing on 3 May 2018. A EUR denominated, senior unsecured bond issue with a five year tenor may follow, subject to inter alia market conditions. 

Prior to these investor meetings, B2H expects to announce that it has been assigned public corporate ratings. The contemplated bond issue will not be assigned an issue rating.  

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 2018. 

Gross cash collection of NOK 775 million (575) 
- up 35% y-o-y 

Portfolio purchases of NOK 1,485 million* (340)
- up 337% y-o-y

Total gross ERC at end of quarter of NOK 18,153 million (9,852)
- up 84% y-o-y

(comparable figures for Q1 2017 in brackets)

B2H experienced record-strong cash collection and operational costs in line with expectations in Q1 2018. 

The Company acquired portfolios for NOK 1,485 million* during the quarter, spread across all regions present with an overweight in SEE due to the Greek EUR 90 million portfolio disclosed in March 2018. In addition to the acquired portfolios the Company entered the French market in March 2018 through the acquisition of NACC which is one of the leading players in France. NACC represents an increase in ERC by approx. EUR 115 million. Over the last 12 months, B2H has acquired portfolios for approx. NOK 5.3 billion (up 112% y-o-y) and grown the total gross ERC to approx. NOK 18.2 billion (up 84% y-o-y). 

The Company continues to see strong momentum in its main markets and a good current pipeline.

Furthermore, B2H has completed an agreement with DNB Bank ASA, Nordea Bank AB and Swedbank AB whereby the banks have increased the current Revolving Credit Facility (RCF) by EUR 250 million, which includes refinancing of the existing EUR 100 million Term Loan into the RCF. The margin structure is unchanged. The new restated and amended RCF of EUR 510 million supports the Company's growth ambitions going forward. Following the RCF increase, B2H has NOK 2,175 million available for investments at the end of first quarter. A new bond issue will increase the investment capacity accordingly.

* In addition to purchases in Q1, B2Holding will conclude 2 transactions in Q2 in the amount of EUR 120 million included in announced purchase of EUR 275 million in the trading update in Q1.