By Paul A. Harris
Portland, Ore., Nov. 29 - Sweden's Orc Group AB priced a €60 million issue of 8½% five-year senior secured high-yield bonds on Nov. 16, according to a Thursday press release from the company.
Proceeds will be used to refinance existing loans related to Nordic Capital Fund VII's acquisition of Orc Group.
The transaction was well received by the market, as evidenced by a very strong demand with the offering oversubscribed and closed before completion of the investor roadshow, the Thursday press release stated.
"With this financing solution in place, Orc is geared to develop its business and to break new ground as one of the strongest global brands in the financial technology industry," said Per E. Larsson, the company's chairman.
Mark Bulmer, partner and head of banking for NC Advisory (UK) LLP, advisor to the Nordic Capital funds, said "Nordic Capital is very satisfied with the result of Orc's bond issue.
"Companies need financing solutions that are adapted to their specific characteristics and situation. For many companies, the bond market is an interesting complement to conventional bank financing and the high-yield bond market is expected to play a more prominent role in the financing of private equity owned companies in the future.
"Nordic Capital believes a well-functioning Nordic bond market will provide companies with interesting new financing solutions and be beneficial for the Nordic economies in general."
Stockholm-based Orc provides technology and services for the global financial industry.
| Issuer: | Orc Group AB
|
| Amount: | €60 million
|
| Maturity: | Nov. 27, 2017
|
| Securities: | Senior secured high-yield bond
|
| Coupon: | 8½%
|
| Trade date: | Nov. 16
|
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