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Fortenova Group To Refinance Its Debt With Up To € 1.2 Billion Bond, Subject To Final DR Holders Approval

07/22/2019

The Board of Directors of Fortenova Group d.d. has resolved to give approval and instructions to the Executive Directors of the Company to propose to the General Assembly and ultimately to the Depositary Receipts Holders (the “DR Holders”) of Fortenova Group to approve refinancing of Fortenova Group's Super-Priority Facility Agreement dated 8 June 2017 (the “SPFA”) led by HPS Investment Partners, with participation of VTB Bank.

Subject to the final credit approvals, the 4-year bond in the amount of up to 1.2 billion euro will be issued by the company at 7.3% interest rate plus EURIBOR, with 1% floor.

The Executive Directors have called for the General Assembly of the Company and STAK Management called for the meeting of the DR holders to vote on the approval to Fortenova Group to enter the refinancing arrangement. The electronic voting of the DR Holders closes on Thursday, July 25th and the General Assembly will take place on July 26th, 2019. A 2/3 vote of the DR holders is needed for the approval.

“I am particularly proud that we have negotiated up to 1.2 billion financing in the open market, which will be available from a respectable financial institution that has no prior links with our company. The fact that we did not have to go to our owners or present-day creditors for SPFA refinancing proves that our business is viable and has good prospects, recognized by HPS Investment Partners. Also, participation of VTB Bank, one of our owners and present-day creditors, in this arrangement that is subject to their credit approval, clearly shows that those who know our business well also believe in our future and I would like to thank them for that”, said Fabris Peruško, CEO of Fortenova Group d.d. “I believe that majority of our DR holders will recognize that this financing secures our mid-term financial stability under acceptable conditions, that can also be improved over time, and I invite our DR holders to vote for its approval”, added Peruško.

In terms of half-year results of Fortenova Group d.d., it has been reported at the Board of Directors meeting that estimated H1 2019 revenues of the key operating companies of the Group have reached an amount of 1.53 billion euro or 11.3 billion kuna, surpassing the last year H1 revenues by more than 2%. At the same time estimated EBITDA of the key operating companies is more than 101 million euro or more than 750 million kuna, that is 5% above the last year results.

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