AS Longo Group secured bonds with a 10% interest are open for subscription today
AS Longo Group, the largest used car retailer in the Baltic region launches a public bond offering of 10 million euros today in all three Baltic states with a fixed annual interest rate of 10% and a maturity of three years. The subscription period will last until 25 November and is open to both retail and professional investors.
“Since its inception, Longo Group's mission as a leading player in the Baltics has been to bring new meaning to the used car market. It is grounded in offering a wide assortment, high quality, and a fair, transparent experience for our clients. We have laid all the necessary groundwork to elevate the company’s expansion to the next level, and this bond offering will further accelerate our growth plans,” says Edgars Cērps, Founder and the Member of the Management Board at AS Longo Group.
The proceeds from the bond offering will be used to refinance existing liabilities and to finance the Group’s growth plans through investments in new car stock and expansion of sales network.
“The secured bond offering of AS Longo Group will provide investors with the opportunity to participate in the Group’s growth story, while contributing to the overall transparency of the Baltic used car market. It will broaden the range of bonds available to Baltic retail investors, as the minimum investment in the bonds is only EUR 100,” says Kristiāna Janvare, the Managing Director of Investment Banking of AS Signet Bank.
Key Performance Indicators of AS Longo Group
AS Longo Group integrates three core business areas to create a seamless and efficient operation: 1) sourcing- car purchasing operations; 2) preparation operations and logistics management; 3) sales and after-sales: digital and in-person across Latvia, Lithuania, Estonia, and Poland.
AS Longo Group maintains a strong capital base, with a capitalization ratio consistently above 50%, highlighting its stable capital structure. In the first six months of 2024, gross profit grew by over 13%, reaching 3.5 million euros.
Total revenue in the first half of 2024 was EUR 22.6 million, an 8% decrease compared to the same period in 2023, primarily due to a decline in the average selling prices of passenger cars, while sales volumes remained fairly stable.
The Group's EBITDA for the first half of 2024 reached EUR 620 thousand, a 9% increase compared to the same period last year. Full-year EBITDA for 2023 was EUR 1.69 million.
Secure your spot and register for the investor webinar
To introduce the potential investors with the AS Longo Group and the bond offering, as well as address any potential questions, company will hold a webinar on 14 November at 11:00 EET. To sign up for the webinar, please use the following link: https://nasdaq.zoom.us/webinar/register/WN_u3o4jwW-TsajQYpe2539yg
Secured bonds with an annual coupon rate of 10%
Base Prospectus of AS Longo Group is approved by the Bank of Latvia on November 7, 2024, which provides that within bond program the company may issue up to 20 million euros in total. The first tranche issue is anticipated to be up to 10 million euros.
Main terms of the offering
During the public bond offering in Latvia, Estonia, and Lithuania AS Longo Group will offer investors to subscribe to up to 100 000 bonds with a nominal amount of EUR 100 per bond, annual fixed interest rate of 10% and a maturity of three years. The subscription is open to both retail and professional investors, and includes an exchange offer to investors of the two existing bond issues maturing in the end of November 2024 and in June 2025.
The bonds will be secured by pledges on assets of AS Longo Group subsidiaries in Latvia and Lithuania which cover the Group’s bonds with a comfortable reserve.
AS Longo Group will offer investors to join a Loyalty Program. Investors committing over EUR 500 during the bond offering unlock the exclusive opportunity to enroll in its Loyalty Program. This entitles to a discount when purchasing a car at Longo, along with other benefits based on the investment amount. Detailed terms of the Loyalty Program are published on the Group's website: www.longo.group/
Timetable of the offering
· Start of the offering period 11 November 2024 at 10.00 EET
· End of the offering period 25 November 2024 till 14.30 EET
· Announcement of the results 26 November 2024
· Settlement 29 November 2024
After the issue date, AS Longo Group will apply to Nasdaq Riga for admitting the bonds to listing and trading on the Regulated market – the Baltic Bond list.
The arranger of this bond issue is AS Signet Bank, whereas the legal counsel is ZAB Eversheds Sutherland Bitāns SIA. Sorainen ZAB SIA acts as collateral agent.
About AS Longo Group
AS Longo Group is the largest used car retailer in the Baltic region, providing the most extensive selection of vehicles. Established in 2018, Longo employs over 140 professionals and reached a remarkable revenue of 47.8 million euros in 2023. The headquarters are in Latvia, from which AS Longo Group manages 9 subsidiaries across Lithuania, Estonia, Poland, the Netherlands, Belgium, and Germany. Since the inception, Longo mission has been to establish a new standard of quality within the used car retail sector in the Baltic region, ensuring a transparent, reliable, and outstanding car-buying experience for customers, both online and in-person.
AS Longo Group growth has been recognized by the Financial Times and included in the FT 1000 list of Europe’s fastest-growing companies for 2024, ranking 1st among Latvian companies and 10th in the European automotive sector.
Disclaimer: This announcement is an unpaid marketing communication in accordance with the Prospectus Regulation and does not constitute investment advice or an offer. The information provided herein contains statements on the Public Offering of bonds of AS Longo Group. Every investment decision must be based on a prospectus approved by the Bank of Latvia. An approved prospectus is available on Bank of Latvia website (https://bank.lv).
Dārta Keršule
Group CFO
Tel. +371 2957 8094
darta.kersule@longo.group
|