Property Group RB Management Leads Completion of Bond Issue
OREANDA-NEWS. May 14, 2009. Acme Corporation, one of the companies serviced by RB Management (RBM) property group successfully issued a bond at the end of April. The debt securities were offered to investors with 8% annual yield and maturity in April 2013. The nominal value of the instrument is EUR 6.05 million. It is planned to list the bonds on NASDAQ OMX Riga Stock Exchange. Investors received the bonds in exchange for SIA Apex Investments bonds, reported the press-centre of Parex banka.
Acme Corporation consolidates the group’s retail, office and logistics holdings under one umbrella for more efficient reporting and consolidation, as well as offers a better collateralised portfolio for bondholders.
The arranger of the bond transaction was Parex banka. Janis Dubrovskis, Director of Debt Origination, Parex banka said: “In order to successfully close the issue of Acme Corporation bonds we had to negotiate an acceptable solution for all the involved parties – each individual bondholder, Acme Corporation and the senior lender. It was a complicated process. We are glad that bondholders showed trust in the current management and demonstrated their belief in the continued stability of Acme Corporation’s business by signing up for this new bond issue.”
Commenting on the new issue, Jerry Wirth, partner of RBM, said: “We are proud of our team for their hard work and steadfast belief in the portfolio. The success of a new issue in this historically low market is a testament to sound management, a solid track record, and persistence.”
David DeRousse, partner of RBM, added: “From the beginning, our investment criteria called for safe, reliable cash flowing real estate. We believe this philosophy is proving itself now; even in the current market, the companies’ cash flow remains stable. We are pleased that bondholders agree with us, as without their cooperation, we would not have been able to structure a new bond issue that benefits bondholders, the senior lender and the issuer.”
This is the second successful bond retired by RBM Group, with the first being part of a sale of hotel development and RBM Group company SIA Happy Trails to Estonia’s Infortar in December 2007.
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