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Published: 2023-09-20 18:13:45 CEST
Storent Holdings
Inside information

Storent Holdings SIA announces a public offering of notes in the amount of EUR 4 500 000

Insider information, 2023-09-20 18:13 CEST --  

Storent Holdings SIA, Latvia's leading construction equipment rental company, one of the largest suppliers in the Baltic states, announces the public offering of notes in the total amount of EUR 4 500 000, with a fixed interest rate of 11% and maturity date on 21 December 2025 (Final Terms of issue of notes attached).

Notes are issued in accordance with the Base Prospectus of Storent Holdings SIA for the Programme for the Issuance of Notes in the Amount of EUR 15,000,000 approved by the Bank of Latvia on 30 May 2023, which enables Storent Holdings SIA to place public offerings of notes in the said amount.

Andris Pavlovs, co-founder and Chairman of the Board of Storent group: “By issuing notes, this spring Storent Holdings SIA raised EUR 10.5 million from close to 1000 private investors, originating from 13 countries. I am joyful about the faith our investors have shown in the company's future. With this notes offering of up to EUR 4.5 million, we aim to reach our ambitious development plan. Investment in Storent is an investment in the most innovative rental company. We strive to digitalize the construction rental processes in Baltics and Northern Europe.”

Main terms of the offering

Storent Holdings SIA is offering 45 000 notes with a nominal amount of EUR 100 per note. Issue price of the note is set at 100.641667% of the nominal amount of the note (EUR 100.641667 for one note). The maturity date is 21 December 2025.

The interest rate is 11%. The subscription is open to both institutional and private investors. The subscription period starts on 25 September and will last until 9 October 2023. The results will be announced on 10 October.

The number of notes offered is limited, thus, in case of oversubscription, notes will be allocated to those investors who subscribed earliest.

According to the terms and conditions of the notes, Storent Holdings SIA has the right to purchase its notes during their initial placement in the primary market. Storent Holdings SIA informs that depending on the results of signing the bonds, there is a possibility that Storent Holdings SIA will use this right.

The new issue of notes will supplement the issue concluded in June 2023, which has already been admitted to trading on the Baltic Bond List of Nasdaq Riga.

Timetable of the offering 

Start of the offering period: 25 September 2023

End of the offering period: 9 October 2023 (15:30 Riga time)

Announcement of the results: 10 October 2023

Settlement: 12 October 2023

Invitation to participate in a webinar

Potential investors are welcome to join an investment webinar call on 27 September, at 16:00 Riga time. During the webinar the management of Storent Holdings SIA will introduce the company's profile, present the note offering and address questions raised.

In 2022, Storent group showed a net profit of 4.7 million euros. The first half and Q2 of 2023 was successful for the Storent group. Despite high inflation and measures to slow it down, Storent group managed to increase its level of profitability, with EBITDA in absolute numbers being by 15% higher, reaching a rate of 34%. The net profit in the Q2 of 2023 exceeded 1 million euros, which is by 73% more compared to the same period last year.

By the end of 2023, it is planned to fully complete the implementation of the digital system in company. It already provides faster work processes (automatic checking of the client's solvency, generation of invoices and contracts), as well as a convenient clients virtual office where he can view rental history, active products in rent, as well as receive a personalized price estimate for equipment. This system has already had a profound impact on equipment rental processes in the Baltics and dictates the rules in the field.

About Storent:

Storent was established in 2008 with the goal of developing an efficient construction equipment rental company. Currently the company operates 26 rental depots with a fleet of equipment worth more than EUR 160 million. Storent is the largest construction equipment company in Latvia and has one of the largest market shares in Estonia and Lithuania, and extensive operations in Finland and Sweden.

For media inquiries please contact:

Baiba Onkele

Storent Holdings CFO

Mobile: + 371 29340012

E-mail: baiba.onkele@storent.com

www.storent.com

 


2023.09.20. Final Terms Storent Holdings SIA Second Tranche.pdf
2023.09.20. Issue Specific Summary EE.pdf
2023.09.20. Issue Specific Summary LT.pdf
2023.09.20. Issue Specific Summary LV.pdf