Fortenova Group said on Tuesday its shareholders approved a proposal to refinance an existing bond in an amount from €1.1 billion to €1.2 billion with its biggest creditor, HPS Investment Partners.

“After significant efforts to find financing with banks and bond markets, the Fortenova Group management has decided to enter a new bridge-type financing for the period until 29 November 2024 arranged by HPS, the existing leading non sanctioned creditor,” which the depositary receipt holders “supported with a large majority of votes,” a press release said.

The conditions of the new financing of the entire amount of the current bond ranging from €1.1 billion to €1.2 billion offered by HPS in regards of margin remain the same as for the current bond. The additional terms of the new bond include an Original Issuer Discount, a one-off payment of 6.75 percent of the bond amount to be issued.

“This cost is the price of increased risk due to sanctioned equity holding and the inability of the market to participate in the refinancing of the Group that has Russian sanctioned co-owners,” Fortenova said, adding that “such a cost is also the price paid because of the sanctioned co-owners by all the company’s shareholders.

“The short term 15-months maturity opens the last opportunity for the Group to find the solution for sanctioned entities to cease to be co-owners, which is a prerequisite for the Group to be able to refinance again in that short period of time at the capital markets.”