Boreo Plc issues a new equity-classified EUR 10 million convertible hybrid bond
Boreo Plc (“Boreo” or the “Company”) completes a financing arrangement that supports its growth strategy, value creation and capital structure, and will issue a EUR 10 million equity-classified convertible hybrid bond (the “Convertible Hybrid Bond”) to the Norwegian insurance company Protector Forsikring ASA (“Protector”).
The annual coupon interest on the Convertible Hybrid Bond is a fixed 4 percent until the reset date on 24 June 2030 (the “Reset Date”), after which the annual coupon interest is 14 percent. The holders of the Convertible Hybrid Bond have the right to convert the principal amount of the Convertible Hybrid Bond into Boreo shares at a price of EUR 19 per share during a four-year period following the issuance of the Convertible Hybrid Bond. Upon conversion of the principal of the Convertible Hybrid Bond into shares, a maximum of 526,315 Company shares may be issued. In the event of such conversion, the shares would be offered to the holders of the Convertible Hybrid Bond in deviation from the shareholders’ pre-emptive subscription rights.
The Convertible Hybrid Bond is not intended to be admitted to trading on a stock exchange or any other trading venue. The Convertible Hybrid Bond has no specified maturity date, and the Company has the right to redeem the Convertible Hybrid Bond for the first time after four years from the issuance date. The Convertible Hybrid Bond is expected to be issued on or about 24 June 2025.
“We are very pleased to have completed the transaction, and with the confidence Protector has shown in the Company. The arrangement supports the execution of our acquisition-driven growth strategy, strengthens the Company’s financial position, and lowers financing costs,” says Kari Nerg, CEO of Boreo.
“We have been following Boreo closely for several years and think it has a high-quality portfolio of companies, a strong management team and both the right strategic and geographic focus to enable strong future value creation”, says Jonas Backman, Protector’s Chief Investment Officer Equities.
OP Corporate Bank plc acts as the Lead Manager for the issuance of the Convertible Hybrid Bond (the “Lead Manager”). Castrén & Snellman Attorneys Ltd serves as legal advisor for the transaction, and Legal Folks Ltd acts as the Company’s legal advisor.
Additional information:
Kari Nerg
CEO
tel +358 44 341 8514
CFO Jesse Petäjä
+358 40 706 9450