2022 Nov 25
NEWS: PlusPlus Capital made a restructuring offer to debt investors with outstanding payments to roll over positions to 2026 Eurobond. The offer was prepared together with local and international business and legal advisors.
On 17th of November 2022 during the investor call, PlusPlus Capital announced that it has made an offer to Baltic bond investors.
PlusPlus Capital informed investors about suspended payments.
PlusPlus Capital is committed to solve the situation and has made an offer to all its Baltic bond investors to exchange their existing notes to Eurobond notes. Investors are treated equally in the offer.
The offer was published together with the company 2022 Q3 results. According to PlusPlus Capital the current macroeconomic inflationary environment creates attractive portfolio purchasing opportunities and payments from clients and various profitability ratios are at record levels.
In the nine-month period of 2022, PlusPlus Capital has achieved an increase in payments received from clients (collections) by almost 21% to EUR 15.9 million. Adjusted for one-time effect of the inflows from the Estonian II pillar pension scheme of approx. EUR 1.2 million in September of the previous year, the increase was around 33%.
According to PlusPlus Capital founder and member of the Supervisory Board, Mirje Trumsi the current situation is challenging and we are managing it with utmost care. “Recent results in PlusPlus Capital nine-months business performance are strong and we have appointed experienced management team members Krõõt Kilvet (CEO) and Rasmus Noormägi (CFO) carry out company’s business plan.”
Compared with Baltic bonds Eurobond has several advantages to investors:
- bonds are tradeable on the Open Market in the Frankfurt Stock Exchange;
- Eurobond’s security package is more comprehensive including intragroup guarantees, pledge on loan from the issuer to the mother company and primary bank account pledges;
- Eurobond`s structure imposes additional covenants to company’s performance.
“We are confident that the offered solution to bond investors will meet investors’ expectations and facilitate full returnof invested amount together with interest earned,” said Trumsi.
All concerned bond investors will receive a personal overview of their details of the transaction and important dates.
To reduce the uncertainty among its investors, PlusPlus Capital will continue to communicate developments and next steps in a regular manner.
The 2022 Q3 and 9M financial results can be found here.
About PlusPlus Capital:
PlusPlus is a pan-Baltic and Finnish technology-driven receivables management company with offices in Tallinn, Riga, Vilnius, and Helsinki. The Company acquires overdue loans and other non-performing exposures from financial institutions and non-financial sector merchants. With its core competence in handling claims against private individuals, PlusPlus prefers diversified portfolios balanced by geography, portfolio type, and other metrics.
Since its inception in 2010, PlusPlus has bought over 100 thousand claims with nominal value of approximately EUR 274 million as at 30 June 2022. The Company offers its clients affordable recovery solutions and aims to avoid litigious scenarios. In doing so, PlusPlus pursues win-win solutions that allow sellers to focus on their core business, provide affordable solutions for borrowers, and ensure adequate returns for investors.
PlusPlus is a transparent and socially responsible company set to assist people in resolving problems connected with their insufficient solvency. The ambition of PlusPlus is to increase its market share and further strengthen its position as a leading player in its regional market.