Estonia’s Baltic Horizon gets holder consent to amend 2028 bonds

By Marisa Wong

Los Angeles, March 15 – Baltic Horizon Fund announced it obtained approval for an amendment to the terms and conditions of its €42 million issue of floating-rate bonds due 2028 (ISIN: EE3300003235) and a temporary waiver of the bonds’ debt service coverage ratio covenant.

Baltic Horizon sought bondholder approval through a written procedure announced on March 13.

Altogether, holders holding €34,499,997, or 100% of the aggregate nominal value, of the bonds, participated in the written procedure. The quorum for adopting the decision by way of written procedure was therefore reached, according to a Friday press release.

The holders voted unanimously in favor of the following:

• Making the debt service coverage ratio of the group above 1.10 until Dec. 31, 2023 (inclusive), above 0.85 for the period of Jan. 1, 2024 until Dec. 31, 2024 and above 1.20 after Jan. 1, 2025;

• Prolonging the deadline for completing the mandatory early redemption of the bonds in the amount of €8 million to July 8;

• Stipulating that the release of the collateral of the bonds is solely subject to the completion of the mandatory early redemption and removing the other preconditions for the release of collateral of the bonds;

• Introducing an amendment fee payable to holders for granting consent to the first three requests described above in total amount of €80,000, payable upon completion of the mandatory early redemption in full.

The voting deadline was set at 6 a.m. ET on March 20.

Holders representing 55% of the bonds had to vote, and two-thirds of the votes needed 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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