On instigation of written procedure for receipt of consent of Noteholders holding the Notes with ISIN LV0000850089 and ISIN LV0000850345Insider information, 2024-08-08 16:21 CEST --
AS “Storent Holding”, registration number 4020317439, (the “Issuer”), in accordance with Clause 26.3 of the General Terms and Conditions of the Notes set forth in the Base Prospectus of the Issuer dated 25 May 2023 and the supplement to it dated 21 February 2024 (the “General Terms and Conditions”) as of 8 August 2024 instigates a written procedure (the “Written Procedure”) to obtain the Noteholders’ consent on amendments to the General Terms and Conditions.
In the first half of 2024, the Group reached a consolidated revenue of almost 20 million euros. In order to accelerate its long-term growth, the Group has invested significantly in equipment, information technology and human resources. Such investments are the first precondition to any rental company to enable further growth. Investment decisions the Group’s management made were based on upcoming years market potential and growth. According forecast of the construction market research company Forecon, the rental equipment market is expected to grow by 6% in 2025 in Baltics, and by 8% in Finland and 4% in Sweden in 2025. The largest growth, 11%, is expected to be in Latvia, which is the Groups biggest market. To be able to realize favorable market condition in 2025, the Group needs to make significant investments already in 2024.
In the equipment rental industry, the Net Debt/EBITDA Ratio is usually above 4. For example, for the Europe’s largest companies, Loxam No. 1 in Europe and Boel No. 4 in Europe, whose subsidiaries (Ramirent and Cramo) are the Group’s main competitors in the Baltics and Nordic countries, this ratio is 4.7 and 3.5. In the light of the above considerations, in order to further develop and seize the market potential the Issuer invites the Noteholders to support the proposed amendments to the General Terms and Conditions and amend the Issuer’s Net Debt/EBITDA Ratio, allowing NetDebt/EBITDA Ratio to be lower than 4 starting from the third quarter of 2024 to the second quarter of 2025, while starting from the third quarter of 2025, reducing it to 3.5.
If as a result of the voting of the Noteholders the proposed amendments to the General Terms and Conditions are approved, the Issuer agrees within 10 (ten) Business Days after publication of the Issuer’s notice on entry into force of the amendments to the General Terms and Conditions to pay each Noteholder, who in accordance with a list prepared by Nasdaq CSD SE is a Noteholder on 15 August 2024 and who has voted “yes” to the amendments proposed to the General Terms and Conditions, an amendment fee in the amount of 1 % (one per-cent) from the principal amount of the Notes held by the respective Noteholder. For tax purposes the amendment fee is treated as interest payment and the Issuer will make a payment net of applicable withholding taxes.
Announcement on instigation of the Written Procedure for receipt of the Noteholders’ consent, which contains a detailed information on participation in the voting and timing of the voting, proposed amendments to the General Terms and Conditions, the voting form and the form of proxy are attached hereto, as well as available at: https://www.storentholding.com/electronic-voting-2024
The Issuer invites all Noteholders to be responsive, to thoroughly familiarize themselves with the proposed amendments and to submit their votes by 29 August 2024 (inclusive).
Baiba Onkele
Chief Financial Officer
AS “Storent Holding”
Mobile: + 371 29 340 012
E-mail: baiba.onkele@storent.com
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