Cyfrowy Polsat S.A. has successfully issued corporate unsecured series A bearer bonds having with the nominal value of PLN 1 billion. The bonds have been registered in the National Depository for Securities and will be listed in the ASO Catalyst Alternative Trading System.
Following the public offer, which commenced on July 2, 2015 and was addressed to at least 150 designated addressees, on July 10 the bonds were allocated to 52 investors who included numerous investment and pension funds as well as the European Bank for Reconstruction and Development (EBRD).
“The bond issue was carried out in relatively difficult market conditions, which makes our success even bigger and which confirms that our Group has very good development prospects. The bond issue enjoyed high interest among investors, which gives us a reason to be very satisfied, especially in light of recent unfavorable developments on financial markets and also in the face of the Greek crisis. By floating the bonds on the Catalyst market we offered investors yet another instrument for making attractive and stable investments into Cyfrowy Polsat Group,” sums up Tomasz Szeląg, CFO, Cyfrowy Polsat S.A. and Polkomtel Sp. z o.o.
The bonds have been issued on the following terms:
- The issue price of one bond was equal to its nominal value and amounted to PLN 1 thousand.
- The bonds mature in 6 years, with the redemption date being July 21, 2021.
- Early redemption of the bonds is possible.
- The interest rate is floating and based on the WIBOR 6M rate plus a margin of 250 bps (if the Leverage Ratio in a given period is lower than or equal to 3.5:1). The bonds include a margin growth mechanism which is driven by the value of the leverage (debt) ratio as defined in the indenture document. Interest on the bonds will be paid out every six months.
“This is a very big corporate bond issue for the Polish market. Thanks to this issue we are effectively diversifying our sources of financing and we are gaining even bigger flexibility in conducting our business. The margin that we have obtained in the course of bookbuilding is very attractive, given the nature of unsecured instruments. We are glad that the European Bank for Reconstruction and Development has once again made a decision to invest in our Group. Cooperation with such a recognized investor gives us not only a lot of satisfaction but it is also a confirmation of the stability and attractiveness of our business as well as the correctness of the adopted strategy of development of our Group,” comments Tomasz Szeląg.
The corporate bonds issued by Cyfrowy Polsat will be floated in the alternative trading system managed by the Warsaw Stock Exchange as an element of the Catalyst market. Once this happens, the wording of the indenture, defining in detail the terms of payment of interest and redemption of the bonds, will be made available to the public.
Trigon Brokerage House is the sole issue agent for Cyfrowy Polsat corporate bonds. Greenberg Traurig is the legal adviser for the bonds offer.