Latvia’s 4finance Holding seeks to extend maturity of 2025 bonds

By William Gullotti

Buffalo, N.Y., Oct. 2 – 4finance Holding SA announced that it has started the formal process of amending the terms and conditions of its February 2025 bonds to extend the maturity to May 2028, according to announcements on Monday.

In addition to the maturity extension, among other things, the group proposes to enhance the bonds by resetting the call structure, canceling €15 million of the bonds owned by the group to provide for a 20% reduction in issue size and granting a put option for €15 million in February 2025.

The proposed update to the call structure reflects the proposed maturity extension, instating a call price of 104 that will decline over time.

The proposed put option, exercisable at the present maturity date, is geared toward providing holders with fund limitations on asset maturities with additional flexibility.

The group is also intending to add its operating entity in the Philippines to the list of guarantors for its euro-denominated bonds.

The voting window will occur between Oct. 18 and Oct. 25, with the result announced shortly afterwards. If the required quorum of 50% is not obtained, a second vote with a quorum of 25% could occur.

If the amendment is successfully passed, bondholders who participated in the vote will receive a 1.25% participation fee.

“Our business is performing well and our balance sheet is strong and liquid. This amendment draws on these strengths with a further 20% deleveraging and indeed enhances the credit by maintaining a balanced maturity profile,” commented Kieran Donnelly, chief executive officer of 4finance, in a news release.

The relevant information about the proposal has been published in the German Federal Gazette and on the group’s website.

Financial advisers Aalto Capital (Munich) (e-mail: manfred.steinbeisser@aaltocapital.com, or +49 1752668901) and Gottex Brokers (e-mail: jonatan.gonn@gottexsecurities.com, or +46 8 665 64 54) are available to provide information to bondholders concerning the amendments.

4finance is a provider of short-term loans and is based in Riga, Latvia.

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