On instigation of written procedure for receipt of consent of Noteholders holding the Notes with ISIN: LV0000860153 and Arsenal Industrial invites to join the webinar on the initiated Noteholders voting and the future business plans
On 9 October 2024 the shareholder’s meeting of SIA Arsenal Industrial registration number: 40103815302 (hereinafter – Issuer), approved amendments to the Terms of the Notes Issue dated 28 November 2023 (hereinafter – Terms of the Issue) for the notes with the ISIN: LV0000860153 hereinafter – Notes as of 9 October 2024 instigates a written procedure (the “Written Procedure”) to obtain the Noteholders’ consent on amendments to the Terms of the Notes Issue.
SIA Arsenal Industrial invites to join the webinar on the initiated Noteholders voting and the future business plans of the Issuer. Webinar will take place on October 15 at 11 AM Baltic time and will be open to all registrants signed up through the link provided below.
To sign up for the webinar, please use the following link: https://nasdaq.zoom.us/webinar/register/WN_BQtudolHRG-bLC9ryGO6FQ
Webinar will be hosted by Gints Vanags, Member of the Management Board, and Ģirts Milgrāvis, Chairman of the Supervisory Board of Arsenal Industrial. Webinar will be held in English. After the presentation, a question and answer session will take place. Attendees are welcome to send their questions until October 14 to the e-mail ieva.unda@nasdaq.com or submit them through the registration link.
Q2 2024 ended with a significantly lower EBITDA compared to last year, driven by reduced activity in the construction market, resulting in lower rental prices and turnover. Rising sales force costs also impacted EBITDA, with personnel expenses increasing by 15% over the first six months as the Group focused on retaining its top employees while reducing staff numbers from 78 in Q4 2023 to 61 in Q3 2024.
Since Q2 2024, the Group has been executing a cost-reduction plan, which includes reducing the number of rental locations, centralizing operations, and optimizing its workforce. This strategy aims to increase revenue using existing resources, gradually boost turnover, and solidify the Group's market position. However, the full benefits of these measures are expected to be realized over several quarters, with notable EBITDA growth projected for 2025, driven by reduced administrative, rental, and sales costs.
To allow the Issuer to take advantage of evolving market conditions, make the appropriate shift in focus of the business, and further develop and capture market opportunities the Issuer invites the Noteholders to support the proposed amendments to the Terms of the Notes Issue.
The Issuer wishes to make the following amendments to the Terms of the Issue:
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removing section 5.1.1. Interest Coverage Ratio;
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amending section 5.1.2. Capitalization Ratio;
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amending section 5.1.3. Net Debt Leverage Ratio;
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adding section 3.2.22. Additional fee payable to Noteholders.
Full amendments to the Terms of the Issue are set out in Schedule 1 hereto.
If the proposed amendments to the Terms of the Issue are approved by the Noteholders' vote, the Issuer agrees to pay an amendment fee of 1% (one per-cent) of the principal amount of the Notes held by each Noteholder who, as per the list prepared by Nasdaq CSD, voted “FOR” the amendments. The payment will be made within 30 calendar days following the Issuer’s notice of the amendments' entry into force. The fee will be transferred to the Noteholder’s bank account.
The Issuer invites all Noteholders to be responsive, to thoroughly familiarize themselves with the proposed amendments and to complete and sign Noteholder’s voting forms and submit to the Issuer or the Noteholder’s Custodian as described in the procedure by 23 October 2024 (inclusive).
Announcement on the instigation of the Written Procedure for receipt of the Noteholder's consent, which contains a detailed information on participation in the voting and timing of the voting, proposed amendments to the Terms of the Notes Issue, the voting form is available in the attachment.
Gints Vanags
SIA Arsenal Industrial, CEO
Mobile: + 371 26 303 848
E-mail: gints.vanags@arsenalrent.com
www.arsenalnoma.lv
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