Cherry issues ?50m bond to finance ComeOn acquisition
Bond snapped up by 70 investors across the Nordic region
Cherry has issued a ?50m secured bond to help finance the acquisition of ComeOn, the first stage of which it expects to finalise this month.
The four year-long bond was successfully placed with over 70 investors throughout the Nordic region. Cherry intends to apply for listing of the bond on Nasdaq Stockholm within 30 days.
The net proceeds will be used to partly finance the acquisition of 49% of the shares in ComeOn Malta Ltd for ?80m. Cherry also has an option to acquire the remaining 51%, which Cherry CEO Fredrik Burvall has previously indicated is “very likely“.
The first part of the deal is expected to be completed this month thanks to the bond issue, while the second part would be financed with an expansion of the corporate bond.
“We are pleased with the large interest among Nordic investors for the bond issue, despite challenging market conditions,” said Burvall. “The access to the corporate bond market demonstrates investors’ trust for Cherry, the acquisition of ComeOn and our business model.”
The bond will give a floating rate coupon of Euribor 3 months + 9.00% with quarterly payments.