Financial structure

The guiding principles of our financial structure

Our aim is to ensure the going concern of the company and increase in shareholder value.

The acquisition of Descom in summer 2015 and the financial solutions applied to implement it had a significant impact on the balance sheet and capital structure of the Solteq Group. The two main elements of the Group’s debt financing are a bond and overdraft and liquidity facilities.

At the time of issue, the fixed-rate bond amounted to 27.0 million euro. The annual interest rate on the bond is 6% and the term to maturity five years. The terms of the bond include definitions of limits and other terms concerning the equity ratio, net interest income and the ratio of interest-bearing net debt to EBITDA. The terms of the bond are available here.

The overdraft and liquidity facilities amount to 6.0 million euro. The financial covenants related to them are included in the terms of the bond.


Solteq has repurchased and cancelled bonds

Solteq Plc has repurchased bonds that it issued on 1 July 2015. The acquired bonds have been cancelled. The repurchases were carried out on market terms in the open market.

The par value of the bonds repurchased and cancelled by the company amounts to 2.5 million and is about 9.3 percent of the total value of the issued bonds.

The purchases were carried out to reduce the company’s interest costs. Read the release.


Amendments to the terms and conditions of Solteq Plc notes approved in written procedure May 18, 2020

Solteq Plc has successfully completed a written procedure on May 18, 2020 in order to amend the terms and conditions of its notes.

Solteq sought for the consent of the noteholders to extend the term of the notes by additional twelve (12) months so that the Final Maturity Date would be six (6) years after the First Issue Date, i.e. July 1, 2021. In addition to the proposed change to the Final Maturity Date, Solteq seeked also for the consent to execute certain other technical changes to the terms and conditions.

Read the release.