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International Internet Magazine. Baltic States news & analytics Tuesday, 20.08.2019, 20:10

Magnetic MRO's bonds admitted to First North market of Nasdaq Baltic

BC, Tallinn, 14.02.2019.Print version
The bonds of Magnetic MRO, an aviation maintenance company headquartered in Estonia, were admitted to trading to the Nasdaq Baltic First North by Nasdaq Tallinn as of Thursday, the stock exchange announced.

Magnetic MRO carried through a private placement of unsecured bonds and raised 8 million euros to support the company's growth plans, including financing a strategic acquisition. The nominal value of one bond is 100 euros, coupon rate is 8 percent 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. 

"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," CEO of Nasdaq Tallinn Kaarel Ots said. 

"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," Ots added. 

"In 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," CEO of Magnetic MRO Risto Maeots said. "Therefore, listing our bonds on the First North market does not mean we have to change our internal processes," he added.

Redgate Capital serves as the certified adviser for the company on First North.

"Magnetic MRO is a strong company with an attractive growth story, and operates in a very interesting and high value-adding global sector," Andrei Zaborski, a partner at Redgate Capital, said. "I would advise investors to keep Magnetic MRO on their radar both in terms of potential additional issues or issues of new instruments," he added.

Magnetic MRO is an European Aviation Safety Agency (EASA) and Federal Aviation Administration (FAA) certified total technical care and asset management organization offering integrated MRO services. The company is headquartered in Tallinn Airport.

In January 2018, an investment firm BaltCap -- the previous owner of Magnetic MRO -- sold 100% of its ownership in Magnetic MRO to a Chinese company Guangzhou Hangxin Aviation Technology. This marked and still marks the biggest Chinese investment made into an Estonian company. 

In 2017, Magnetic MRO's revenues exceeded 90 mln euros, and net profit was approximately 4 mln euros. There are more than 400 employees working in the company.

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