The Iute Group plans to issue a new corporate bond with a minimum volume of 125 million euros, referred to as the Iute Bond 2025/30. This bond is part of a strategic move to refinance the existing bond 2021/26 and to increase funding for further growth.
Details of the Bond
The new bond is expected to have a volume of at least 125 million euros, subject to sufficient participation in the exchange offer. The interest rate will have a minimum rate of 11% p.a.. The term of the bond will be up to five years. A listing on the Frankfurt Stock Exchange (General Standard) as well as on the Nasdaq Tallinn is planned.
Exchange and Cash Tender Offer
Holders of the existing EUR bond 2021/26 (ISIN XS2378483494) can either exchange their bonds for the new bond 2025/30 or return them for a cash payment of 99 euros per bond. The offer is contingent upon at least 75 million euros of the existing bonds being tendered or exchanged.
- Exchange Conditions: Exchange at a ratio of 1:1 into new Senior Secured EUR bonds. Cash premium of 2.50 euros per exchanged bond plus accrued interest.
- Cash Tender Option: Cash payment of 99 euros per bond plus accrued interest.
Deadline
The deadline for the conditional exchange and cash tender offer is from April 9, 2025 to May 2, 2025.
Strategic Objectives
The Iute Group aims to mitigate the risks of future interest rate fluctuations while facilitating the refinancing of the old bond and increasing funding for further growth.