Baltic Horizon gets OK of temporary covenant amendment for 2023 bonds

By Wendy Van Sickle

Columbus, Ohio, July 29 – Baltic Horizon Fund received bondholder approval of a temporary reduction of the equity covenant under its €50 million bonds due 2023 (ISIN: EE3300111467), according to a press release.

As announced on July 6, the fund said it was seeking the reduction in light of the Covid-19 outbreak and the associated effects on Baltic economies and tenants of the properties operated by Baltic Horizon Fund.

Baltic was seeking to lower the covenant to 25% from 35% for a period of 12 months. On Aug. 21, the covenant will automatically be reinstated to its initial form.

The fund said its ability to fulfill the monetary obligations provided in the terms and conditions have not been affected by the pandemic.

The voting deadline was 6 a.m. ET on July 29, by which time holders of €31.202 million, or 62.4%, of the bonds had participated in the written procedure, according to a news release Wednesday.

Of the voting bonds, holders of 68.36% voted in favor of the measures sought.

For a quorum to be reached and the resolution to pass, holders representing at least 50% of the nominal amount of the bonds had to vote and holders representing at least two-thirds of the nominal amount of the bonds participating in the voting needed to be in favor of the decision.

Baltic Horizon Fund is a regulated closed-end contractual investment fund registered in Estonia.

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