Eight Capital Partners PLC (AQSE:ECP) (AQSE:ECP) said it is launching €25mln 4.8% fixed rate five-year bonds which will be listed on the Vienna Stock Exchange.
The company, whose strategy is to invest in technology, media, telecoms and financial services businesses, recently announced that it is seeking to expand its balance sheet by raising new equity capital and the issue of other securities.
“The creation of the new bonds is an important step in the delivery of this strategy,” ECP said in today’s statement.
“As it moves forward, other developments may include an equity placing via an open offer to all shareholders. Warrants and/or other securities may also be included in the capital raise.”
To enable the creation of the new bonds, an initial tranche of €50,000 has been subscribed in cash at par value by Trumar Capital LLC, a substantial shareholder of the company controlled by ECP's chairman Dominic White.
ECP said the new bonds will in part be used to refinance some of the company's 7% bond, launched in 2019 to raise up to €5mln, of which €3.99mln has been issued to date. This bond matures of 26 July 2022 and is also listed on the Vienna Stock Exchange.
Commenting on the bond issue, White said: "The company has been successful in creating and utilising debt instruments to raise finance. These instruments are useful to help build scale; it can prove challenging for small companies to raise meaningful sums through equity alone.
“This bond issue is the next step towards enlarging the company's balance sheet, and it provides better medium-term visibility since our existing listed bonds approach maturity in 2022.
“Over the coming months, I am expecting ECP to be offering shareholders, historic bondholders and private creditors, the opportunity to subscribe for new ordinary shares or listed debt in the company."