Fashion Retailer Baltika issues convertible bonds of €3mn

April 21, 2014 - Estonia

Baltika Supervisory Council decided on 26th of March 2014 meeting to change the decision taken on 26th of February, regarding convertible bonds. Based on the latest decision the amount will increase from 2 million euros to 3 million euros, the interest rate will decrease by one percentage point and the share conversion price will be changed.
The increase in amount is due to the risks concerning Russian and Ukrainian markets. The Council found it necessary to increase the financing of the Group due to the escalating risks on Eastern-European market and possible effects on financial results, also due to Baltika’s plan aimed to decrease the risks on these markets.
Council decided, on 26th of March 2014, to propose to the Annual General Meeting of shareholders, to issue convertible bonds with bondholder option in the total amount of 3 million euros. Proposal is for issuance of 600 convertible bonds with issuance price of 5,000 euros.  
The subscription for the bonds will take place from 14th to 28th of July 2014. The bond will bear 6.5% interest p.a. and each bond will give its owner the right to subscribe 10,000 AS Baltika shares of the company with subscription price 0.5 euros. Details will be included with the Annual General Meeting proposed resolutions on 4th April 2014. Largest shareholder of Baltika KJK Fund, Sicav-SIF will take up the offer in full amount if needed.