The Fortenova Group, the successor to the Agrokor food and retail conglomerate, issued a EUR1.157bn bond on Friday, closing the process of refinancing the Super-Priority Facility Agreement of June 2017. The new financing is structured as a 4-year bond of EUR1.157bn at 7.3% interest plus EURIBOR, with a 1% floor, and is led by HPS Investment Partners in cooperation with Russia’s second largest bank VTB Bank that holds 7.5% stake in the Fortenova Group, Fortenova said in a statement. It said that under the refinancing agreement the interest rate will be successively lowered as the group reduces its leverage ratio. Fortenova Group CEO Fabris Perusko said that the new financing arrangement also provided for the group’s mid-term stability and long-term viability, growth and development.
Note that the temporary creditors’ council of the former Agrokor conglomerate on Wednesday voted for refinancing a roll-up loan with three votes from representatives of financial creditors, while suppliers’ two representatives voted against. The EUR1.06bn roll-up loan was taken to cover the debts of the former Agrokor food and retail chain. According to previous information, the roll-up loan had an interest rate of 11.5%, which was expected to grow to 14% by September, while the effective interest rate could reach even 18%. Russian bank Sberbank, formerly the biggest creditor of Agrokor, became the biggest single shareholder with a 39.2%-stake in Fortenova Group. Bondholders hold 25% in Fortenova and local Croatian banks 15.3%.