Magnetic MRO, a global provider of Total Technical Care for aircraft operators and lessors, has announced their bond trading on the Nasdaq Baltic First North bond market as of today, February 14th.
Magnetic MRO carried through a private placement of unsecured bonds and raised EUR 8 million to support the company’s growth plans, including financing a strategic acquisition. The nominal value of one bond is 100 euros, the coupon rate is 8% per annum and paid out quarterly. The bonds will mature in 3 years. The bonds were subscribed by 70 investors from Estonia, Latvia and Lithuania.
“At the beginning of 2018, Hangxin, an international airplane component maintenance company listed on the Shanghai stock exchange, acquired the shares of Magnetic MRO. This basically means that we have been following the rules of a publicly listed company for almost a year,” said Risto Mäeots, the CEO of Magnetic MRO. “Therefore, listing our shares on the First North market does not mean we have to change our internal processes, but instead allows Baltic investors to invest in our growth story. We were really happy to see that our bonds were subscribed by investors all across the Baltics and in addition to investment funds and banks, also retail investors subscribed for the bonds.”
“Magnetic MRO has gone through a tremendous transformation over the years and – as shown by the titles they’ve won – is now one of the most successful and respected companies in Estonia,” said Kaarel Ots, the CEO of Nasdaq Tallinn. “It is great to see such an ambitious team using First North market to raise capital to fuel its further global expansion. I wish them all the best on their journey as a public company and hope to see them listed on the Main Market in the future.”
Redgate Capital serves as the Certified Adviser for the company on First North. Andrei Zaborski, a partner at Redgate Capital said that Magnetic MRO bond listing on First North is great news for the local and regional investors. “Magnetic MRO is a strong company with an attractive growth story, operating in a very interesting and high value-adding global sector,” said Zaborski. “I would advise investors to keep Magnetic MRO on their radar both in terms of potential additional issues or issues of new instruments. First North market serves as a springboard to reach the bigger markets, and at the same time it is a good place for retail investors to get to know the new companies on the market.”