Eurohold calls EGM to approve increase in authorized corporate guarantees (NEUTRAL)

14.09.2021 Source: Eurohold Bulgaria; Commercial Register; FFBH

Eurohold Bulgaria (Eurohold) has called an EGM on Oct 18 to approve increase in the corporate guarantees issued to the collateral agent that acts on behalf of the creditors for the junior debt (mezzanine) extended to Eastern European Electric Company II BV. The loans were extended as part of the deal for the acquisition of CEZ Group assets in Bulgaria. If voted, the MB will be authorized to increase the 66 month corporate guarantee from EUR 150m to up to EUR 240m. In the minutes Eurohold revealed that all payments, including principal, interest and fees and commissions, related to the up to EUR 105m extended to Eastern European Electric Company II BV, amounted up to EUR 134m. The invitation is pending approval by the Commercial Register. Note that at the end of August, FSC issued a temporary ban on the tender offer by Eurohold to all minority shareholders of CEZ Distribution and CEZ Electro. In its resolutions FSC requested certain amendments which, if applied, are expected to increase the fair prices of both companies. The amounts needed according to the initial tender offers amounted to EUR 112.1m while after the majority stakes deal, Eurohold has available financing for c. EUR 117.2m, incl. EUR 90m of the EUR 346m senior syndicated loan, EUR 15m of the EUR 105m mezzanine and c. EUR 12.2m own funds.