AS Longo Group to issue secured bonds with a 10% interest, subscription opens November 11
The Bank of Latvia has approved the Base Prospectus of the secured bond issue of AS Longo Group, the largest used car retailer in the Baltic region. In the first tranche it is planned to raise up to EUR 10 million. Both retail and professional investors are invited to invest in Group’s bonds with a fixed interest rate of 10% and a maturity of three years. The subscription period will start on November 11 and end on November 25.
“AS Longo Group historical performance demonstrates Longo’s capacity for growth. The company has strategically invested in all necessary business processes that support the scaling of its operations. The next steps include significantly expanding the passenger car inventory, widening, and strengthening the physical presence in existing markets,” says Edgars Cērps, Founder and the Member of the Management Board at AS Longo Group.
The capital raised from AS Longo Group bond offering is aimed at refinancing existing liabilities, as well as additional investments to finance the Group’s expansion plans, including working capital investments necessary for purchase and preparation of new car stock and expansion of sales network.
“With two successful bond issues already listed on Nasdaq, AS Longo Group demonstrates how companies can effectively leverage capital market financing to support their growth strategies. The Baltic used car market is of substantial size, with an estimated value of around €4 billion but is fragmented with a large number of small market participants. As the leading player in the sector, AS Longo Group has significant growth potential that can be reached with the help of this bond program,” says Kristiāna Janvare, the Managing Director of Investment Banking of AS Signet Bank.
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.
Main terms of the offering
During the public bond offering in Latvia, Estonia, and Lithuania AS Longo Group will offer investors to purchase 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.
Investors Loyalty Program
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 in accordance with Base Prospectus and Final terms.
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.
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. Find out more: https://longo.group/
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
|
