European Lingerie Group AS has successfully placed a EUR 40 million senior secured bond under a framework of up to EUR 60 million. The Bonds, maturing in February 2021, will bear a floating rate coupon of 3 month Euribor + 7.75 per cent, with interest paid quarterly. The Bonds will be governed by Swedish law and the Company has undertaken to list the Bonds on Nasdaq Stockholm within 12 months of the issue date.

The proceeds from the transaction will be used to refinance existing interest bearing bank and convertible bond debt and for general corporate purposes including capital expenditures.

The transaction was well received by the market, with strong demand from continental/eastern European and US institutional investors, coupled with participation from Swedish and other Nordic accounts.

“The bond issue enables ELG to obtain a more flexible and holistic capital structure, well suited for the Company’s existing pan-European operations as well as the Owner’s and Management’s future growth plans. The bond issue marks the first step for the Company on international capital markets and is a good platform for the Company to pursue its goal of becoming the leading vertically integrated lingerie group in Europe,” says Peter Partma, CEO of ELG.

Pareto Securities AB acted as Sole book runner in connection with the bond issue.