AB East West Agro distributed a non-public bonds
Kauno r., 2020-12-04 12:15 CET --
AB East West Agro successfully distributed a non-public bond issue on such terms:
Nominal value of one bond: 1.000 EUR;
Nominal value of the entire bond issue: 1.500.000 EUR;
Redemption date of the bonds: the bonds will be redeemed after 24 months from the issue date;
Early redemption: the Company is entitled to redeem all the bonds 18 months after the issue date by giving to the investor at least 2 months’ notice prior to the proposed redemption. Early redemption is subject to a separate agreement between the Company and the investor;
Interest and interest payment terms: subsequently interest rate will be determined every 6 months based on the financial results of the last half of the calendar year or year-end financial results and will applied over the next 6 months: 12%, if the Company’s net financial debt / 12-month EBITDA < 3; 14%, if the Company’s net financial debt / 12-month EBITDA > 3 but < 4.5; 16%, if the Company’s net financial debt / 12-month EBITDA > 4.5;
The bonds are subordinated in favor of AB Swedbank.
The management of East West Agro AB expects that after the first interest recalculation the current interest rate will be 12%.
Also, on 4 December 2020, the loan, which was granted by PRACTICA VENTURE CAPITAL KŪB on 27 November 2015 for duration of 5 years, was repaid, amounting to EUR 2.395.103 with accrued interest. An average annual interest rate was 17.06%.