COBALT advised City Service SE, a leading property and facility management group in the Baltic region, on its issuance of EUR 100 million in Nordic-style senior secured callable bonds with a four-year maturity, issued as the initial tranche under a bond framework of up to EUR 200 million.
The proceeds were raised to finance the acquisition of 100% of the shares in UAB Axioma Servisas, refinance existing indebtedness and support general corporate purposes.
The bonds constitute senior secured obligations of City Service SE and bear floating-rate interest linked to three-month EURIBOR plus a margin. Pareto Securities AS, Frankfurt Branch acted as sole manager and bookrunner and was advised by Wikborg Rein on Norwegian law matters.
City Service SE is registered in Estonia, and its shares are listed on the Warsaw Stock Exchange. The group has Lithuanian roots and is led by Lithuanian management team.
The transaction is one of the few completed Nordic bond issuances by a Baltic-rooted group, showing in practice how Baltic businesses can access the Nordic bond market as an alternative to traditional bank financing. The structure combined Norwegian law bond documentation with a multi-jurisdictional guarantee and security package governed by Lithuanian, Estonian and Norwegian law.
“This bond issuance represents a significant milestone in City Service’s financing strategy, enabling us to finance the acquisition of Axioma Servisas, refinance existing indebtedness and support general corporate purposes. Access to the Nordic bond market diversifies our funding sources and supports the Group’s continued development. We thank COBALT and Pareto Securities for their professional support throughout the transaction.” said Aistė Cikanaitė-Jankauskė a member of the Board of City Service SE.
Reflecting the group’s Lithuanian roots, COBALT Lithuania acted as legal adviser to City Service SE. The team was led by Partner Eva Suduiko, with COBALT Estonia team, led by Marina Kotkas, advising on specific Estonian law matters.
“Nordic bonds are still a novelty for Baltic issuers, and this was a complex but very interesting transaction, bringing together Lithuanian, Estonian, and Norwegian law elements within a single financing. We are proud to have helped City Service put the Nordic bond format into practice,” said Eva Suduiko, Partner at COBALT.
Leading experts
