Balanced capital structure
B2Holding has a solid funding base to support future growth. As at the end of 2020, our leverage and our long-term funding structure give us the liquidity and financial flexibility to deliver on our strategy.
The total share capital (equity) raised since 2011 was at year-end 2020 NOK 2,953 million. At the end of 2020, total equity was NOK 4,719 million and the tangible equity (adjusted for intangible assets and goodwill) was NOK 3,746 million which means that the tangible Equity ratio was 23.1 %.
The Group has the following bank financing with a total facility line of EUR 610 million:
- RCF: EUR 510 million senior secured revolving credit facility with DNB Bank ASA, Nordea Bank Abp, and Swedbank AB with maturity date as of 31 May 2023
- Bridge: EUR 100 million senior secured bridge facility with DNB Bank ASA and Nordea Bank Abp with maturity date as of 3 May 2022.
The Group has four listed senior unsecured bond loans outstanding in total EUR 775 million:
- B2H02: 5-year EUR 175 million issued on 4 October 2016
- B2H03: 5-year EUR 200 million issued on 14 November 2017
- B2H04: 5-year EUR 200 million issued on 23 May 2018
- B2H05: 5-year EUR 200 million issued on 28 May 2019
The financial covenants are all aligned in the four bond loans. The bond issued in 2016 carries a make-whole clause while the other bonds carry a call option grid. The bonds issued in 2017 and 2018 are currently callable, while the bond issued in 2019 will become callable in 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 27.5 % and a leverage ratio target below 3.0x. We aim to increase the headroom to financial covenants and maintain solid liquidity, including undrawn RCF capacity and cash reserves, to facilitate future growth in 2021 and to be able to act when attractive opportunities arise. 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 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 more than NOK 4 billion each year without any new equity required.
|Senior Unsecured Bonds||Revolving Credit Facility (RCF)|
Debt maturity profile
EUR 429 million liquidity reserves of which EUR 293 million available in RCF + bridge
Liquidity reserves are calculated as EUR 88m undrawn existing RCF plus EUR 76m in undrawn bridge facility
plus EUR 19m in undrawn overdraft plus EUR 40m cash on balance sheet less NOK 200m (EUR 19m) in cash reserves less
deferred payment for portfolio purchases of EUR 2m plus fair value of Treasury Bonds of EUR 92m.
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 and 2020. 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|
|S&P||B+||B+||12 February 2021|
|Moody’s||Ba3||B1||18 December 2020|
Capital structure timeline
|Corporate||Bank Loan||Bond Loan|
|2020 (Nov)||• EUR 510 million senior secured RCF was extended to May 2023. |
•New EUR 100 million senior Bridge Facility with maturity in May 2022
|EUR 150 million senior unsecured bond with maturity in Dec 2020 was fully repaid.|
|2019||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) |
• B2Holding ASA listed on Oslo Stock Exchange
• 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