Balanced capital structure
B2Holding has a solid funding base to support future growth. As at the end of 2019 our gearing and our long-term funding structure gives us the liquidity and financial flexibility to deliver our strategy.
Our combination of equity, bond and loan financing provides access to capital when larger opportunities arise, while steady collections across the Group provide a strong cash flow.
At the end of 2019, total equity was NOK 4,237 million and the tangible equity (adjusted for intangible assets and goodwill) was NOK 3,305 million which means that the tangible Equity ratio was 20.6 %.
The Group holds a EUR 510 million senior secured revolving credit facility (RCF) with DNB Bank ASA, Nordea Bank AB and Swedbank ABP with final maturity date as of 31 May 2022.
The Group has five listed senior unsecured bond loans outstanding in total EUR 925 million:
- 5-year EUR 150 million issued on 8 December 2015
- 5-year EUR 175 million issued on 4 October 2016
- 5-year EUR 200 million issued on 14 November 2017
- 5-year EUR 200 million issued on 23 May 2018
- 5-year EUR 200 million issued on 28 May 2019
The financial covenants are all aligned in the five bond loans. The bonds issued in 2015 and 2016 carry a make-whole clause while the other bonds carry a call option grid. The bond issued in 2017 became callable in November 2019, while the bonds issued in 2018 and 2019 will become callable in May 2020 and May 2022.
We will continue to finance our business through a mix of debt and equity, with a long-term equity ratio target larger than 25 % and a leverage ratio target below 3.0x. We aim to maintain solid liquidity, including undrawn RCF capacity and cash reserves, in order to facilitate future growth in 2020 and to be able to act when attractive opportunities arise, but also to refinance the bond maturing in December 2020. The Group’s strategy aims to maintain the position among the leading European debt solution providers through profitable growth in core markets, increased operational efficiency and by leveraging our servicing capabilities by increasing assets under management.
Based on the current financing of the Group and estimated cash flow, the Group has an investment capacity of over NOK 4 billion each year without any new equity required.
|Senior Unsecured Bonds||Revolving Credit Facility (RCF)|
The public rating is an assessment of the company’s ability and willingness to meet its financial obligations. B2Holding received its first public rating by Moody’s Investors Service, Inc. (Moody’s) and S&P Global Ratings (S&P) in 2018 and has completed annual reviews with both rating agencies in 2019. The public rating is an important tool for the Group with regards to attracting investors and funding at attractive levels. B2Holding continuously works to improve the assigned rating. Please note that only the latest bond, issued in May 2019, is rated.
|Agency||Corporate Family Rating||Bond Issue Rating|
Capital structure timeline
|Year||Corporate||Bank Loan||Bond Loan|
|2019 (May)||Assigned Bond Issue rating. Moody's Investors Service, Inc. assigned a “B1”, while and S&P Global Ratings assigned a “BB-“||EUR 200 million senior unsecured bond, maturing 2024|
|2018||• Increased share capital through a successful private placement of NOK 747 million through issuance of 36,912,000 new shares|
• Public Corporate Family Rating assigned. Moody's Investors Service, Inc. assigned a “Ba3” and S&P Global Ratings assigned a “BB-“
|All bank loan was refinanced into a “new” EUR 510 million senior secured RCF, maturing 2022||EUR 200 million senior unsecured bond, maturing 2023|
|2017||EUR 100 million senior secured term loan, maturing 2018||EUR 200 million senior unsecured bond, maturing 2022|
|2016||• Included in the Oslo Stock Exchange Benchmark Index (OSEBX) (December)|
• B2Holding ASA listed on Oslo Stock Exchange (June)
• Increased share capital through a successful private placement of NOK 650 million through issuance of 54,166,666 new shares
|EUR 175 million senior unsecured bond, maturing 2021|
|2015||EUR 260 million senior secured RCF, maturing 2019||EUR 150 million senior unsecured bond, maturing 2020|
|2014||• The shares were listed on NOTC, The Norwegian Over the Counter Market.|
• Increased share capital with NOK 950 million through two share issues of 100,000,000 and 46,666,667 new shares