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Estonia’s Baltic Horizon Fund asks bondholders for covenant waiver
Chicago, March 13 – Baltic Horizon Fund is seeking bondholder support on a temporary waiver on the debt service coverage ratio covenant for its €42 million issue of five-year floating-rate bond due in 2028 (ISIN: EE3300003235), according to a press release.
The fund is requesting holders amend and temporarily lower the debt service coverage ratio covenant for 12 months from Jan. 1 to Dec. 31, 2024. The request is due to the current situation of Baltic economies, high Euribor, as well as the outlook for the next year.
There are currently €34,499,997 of the bonds outstanding.
According to the terms and conditions of the bonds, the fund must redeem €12,499,997 of the bonds by May 8.
The issuer is also seeking consent to prolong the deadline for the mandatory redemption of an €8 million portion of that total.
The issuer would be allowed to redeem €4,499,997 before the May 8 deadline, but the other €8 million would be redeemed before July 8.
Further, the issuer is requesting a release of the collateral of the bonds after mandatory early redemption of the bonds has been completed.
The fund is conducting a written consent for the changes.
Votes are due by 6 a.m. ET on March 20.
Holdings representing 55% of the bonds should vote, and two-thirds of the votes need to be in favor for the transaction to be successful.
Triniti Collateral Agent IX OU is the agent for holders.
More information can be obtained from the fund (tarmo.karotam@nh-cap.com).
Baltic Horizon Fund is a regulated closed-end contractual investment fund registered in Estonia. The fund is managed by Northern Horizon Capital AS.
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