AS Longo Group’s Bond Bonanza: A Cheeky Look into the Baltic Used Car Market
Well, well, well! What do we have here? AS Longo Group, the biggest fish in the used car pond of the Baltics, has decided it’s time to give the public something to talk about—namely, a public bond offering worth EUR 10 million! And with a tasty fixed interest rate of 10% for three years, it’s like they’ve thrown a birthday bash and everybody’s invited—private and professional investors alike! 🎉
The Offer: A Snapshot of Opportunity
The clock is ticking; the subscription period is open until November 25th. If you’ve got a spare €100 (or maybe a little more for those who want discounts on that dream car), then step right up because AS Longo Group is here to make your financial dreams come true. And the cherry on top? They’re launching this shiny bond offering during none other than the Latvian Patriotic Week! How about some flag-waving while you’re at it? 🇱🇻
Edgars Cerps: The Man with the Plan
Edgars Cerps, the audacious founder of AS Longo Group, is taking the reins and making sure this bond operation rides smoothly. He emphasizes that this isn’t just about the money; it’s about redefining the used car market into something that doesn’t feel like a dodgy second-hand shop. “We’ve done our homework,” he exclaims. Maybe he’s been reading all the Car Buying 101 guides? Either way, he’s confident this bond offering will help speed up their plans. Fasten your seatbelts, folks; it’s going to be a bumpy ride—or at least a financially solid one! 🚗💨
What’s the Game Plan?
Now, you might be wondering, what are they going to do with all this cash? As it turns out, they’re using it to refinance existing debts and ramp up their operations. Translation: they want to buy more cars and prepare them better. So, if you’ve ever dreamed of rolling into the neighborhood in style, this could be your chance to flick those “for sale” signs at your neighbors! Kristiāna Janvare, head of the Investment Department at AS Signet Bank, echoes this sentiment, highlighting how this bond offer will contribute not only to the firm’s growth but also to the transparency of the Baltic used car market. Good news for both investors and car buyers!
Key Performance Indicators (Because Numbers Matter)
Let’s crunch some numbers, shall we? AS Longo Group is no small potatoes. In the first half of 2024, they reported a gross profit of €3.5 million, a sturdy increase of 13%—and no, that’s not just from selling ‘one more’ used car than last year!
- Total Revenue: €22.6 million, which is 8% less than last year. I guess even in the glam world of used cars, demand sometimes stalls… maybe people are holding out for electric models?
- EBITDA: This stood at €620,000, reflecting a 9% increase—so while sales might dip, the profit margins are like a well-prepared second-hand car: lean and mean!
The Investor Webinar: Get Involved!
If you fancy yourself as a budding Warren Buffet or just need an excuse to wear your finest investment attire, don’t forget the investor webinar on November 14 at 11:00 EET. You can schmooze with potential investors and ask all those burning questions while sipping perhaps a rather stiff latte? Sign up here: Investor Webinar Registration.
Important Dates to Remember
- Offer Start: November 11, 2024, at 10:00 EET
- Offer End: November 25, 2024, at 14:30 EET
- Results Announcement: November 26, 2024
- Settlements: November 29, 2024
A Pledge You Can Trust
The bonds come with a bit of insurance, thanks to the pledges on the assets of AS Longo Group’s subsidiaries. So, unless they plan to sell off their assets for action figures, you can breathe easy—your investment is somewhat secure!
Your Road Ahead
If you put in at least €500, you’re not just a number; you’re part of the family! Become a member of their loyalty program, snag some discounts on your next used car purchase, and enjoy other fine perks. Who knew the world of finance could lead to such glamour? 💸
The Bottom Line: So, What Do You Think?
If you’re on the fence about investing, just remember: AS Longo is not just selling cars; they aim to manage perceptions and set a new bar for quality in used car sales throughout the Baltics. Before you think about shelling out your hard-earned cash, keep your eyes peeled for the approved Prospectus on the Bank of Latvia’s website. Remember: every investment decision should be as well-informed as your choice of a second-hand car (who reads those manuals, anyway?).
In short, if you want to hop into a journey that promises financial returns while transforming the car-buying experience, this bond offering might just steer you ahead!
Disclaimer: This is not financial advice. Always do your homework, and check out the official prospectus—after all, wise investors are made, not born!
AS Longo Group
AS Longo Group, the largest used car dealer in the Baltics, proudly announces its public bond offering of EUR 10 million across all Baltic countries. This investment opportunity will feature a fixed annual interest rate of 10% and will have a maturity period of three years. Interested investors can subscribe until November 25, engaging both private and professional participants in this lucrative venture.
Edgars Cerps, the founder and chairman of AS Longo Group, expressed excitement regarding the bond offering, coinciding with the celebrations of the Latvian Patriotic Week. “As a locally rooted capital company that has made significant inroads in the Baltic and Polish markets, our aim since inception has been to elevate the used car industry. Through a vast selection, unwavering quality, and commitment to transparency, we’re positioned to accelerate our growth and innovation. This bond issuance enables us to expedite our ambitious plans,” he stated.
AS Longo Group intends to allocate the funds raised from the bond issuance to refinance existing debts, and to finance pivotal expansion initiatives. These initiatives include bolstering working capital for purchasing and preparing new vehicle inventories while also enhancing sales channels to reach broader customer bases across Latvia, Lithuania, Estonia, and Poland.
Kristiāna Janvare, Head of the Investment Department of AS Signet Bank, emphasized the bond offering’s dual advantage: it not only allows investors to be part of AS Longo Group’s growth story but also enhances the transparency of the Baltic used car market. “Investors can engage with a starting minimum investment of just 100 euros, thereby broadening the spectrum of bond options available to private investors in the region,” she remarked.
AS Longo Group operates a multifaceted business model characterized by three key areas: meticulous vehicle selection, an advanced preparation center, and comprehensive sales and after-sales support both online and in traditional retail settings.
The company shows a strong equity base, as evidenced by a capitalization ratio consistently exceeding 50%, which underscores its robust financial structure. In the first half of 2024, AS Longo Group reported a gross profit of 3.5 million euros, reflecting a remarkable increase of over 13% compared to the same period in the previous year.
Total revenue generated in the first half of 2024 reached 22.6 million euros. While this marks an 8% decline compared to the corresponding period in 2023, it is primarily attributed to a drop in the average selling price of vehicles, with sales figures remaining stable.
EBITDA, representing profit before taxes, interest, depreciation, and amortization for the first half of 2024, stood at 620 thousand euros, showcasing a 9% increase compared to the same timeframe in 2023, when it was recorded at 1.69 million euros.
To further engage potential investors and shed light on the bond offering details, AS Longo Group is organizing a webinar on November 14 at 11:00 AM Latvian time. Interested parties can register via the following link: https://nasdaq.zoom.us/webinar/register/WN_u3o4jwW-TsajQYpe2539yg
The bonds will adhere to the guidelines outlined in the basic prospectus approved by the Bank of Latvia on November 7, 2024. This permits AS Longo Group to issue bonds amounting to a total of up to 20 million euros as part of its ongoing bond program, with the first issuance planned at 10 million euros.
During the public bond offering, AS Longo Group will present 100,000 bonds, each with a nominal value of EUR 100. This offering, which carries a fixed annual interest rate of 10%, will also allow both retail and professional investors to partake, including an exchange opportunity for two existing bonds with maturities set for late November and June 2025.
The bond offering will be secured by assets from AS Longo Group’s subsidiaries located in Latvia and Lithuania, ensuring a comfortable margin to back the bonds. Investors committing EUR 500 or more will qualify for membership in a loyalty program, unlocking discounts on Longo car purchases and additional perks based on their investment level. More details on the loyalty program can be found on the Group’s official website: www.longo.group/
Key dates for the bond offering are as follows: The offering starts on November 11, 2024, at 10:00 EET and concludes on November 25, 2024, at 14:30 EET. Results will be publicly announced on November 26, and settlements are scheduled for November 29, 2024. Following the issuance, AS Longo Group plans to submit an application to Nasdaq Riga to have its bonds included and traded in the regulated market.
The bond issue is being organized by AS Signet Bank, with legal support from ZAB Eversheds Sutherland Bitāns SIA and collateral management by Sorainen ZAB SIA.
Founded in 2018, AS Longo Group stands as the preeminent used car dealer in the Baltics, boasting a remarkable assortment of vehicles. The company operates more than 140 staff members and recorded impressive revenues of 47.8 million euros in 2023. Its head office is based in Latvia, governing nine subsidiaries across Lithuania, Estonia, Poland, and extending to the Netherlands, Belgium, and Germany. The company’s vision is to set a new quality benchmark in the used vehicle trade across the Baltics, ensuring that all customers experience a transparent and dependable car buying journey, whether online or offline.
In recognition of its rapid growth, AS Longo Group has proudly been featured in the Financial Times, ranked among the top 1000 fastest growing companies in Europe. Notably, AS Longo Group ranked first among Latvian companies and 10th in the European automotive sector.
Disclaimer: This announcement is an unpaid marketing communication under the Prospectus Regulation and does not constitute investment advice or an offer. The information presented here includes announcements about the public offering of AS Longo Group bonds. Every investment decision must be made based on the Prospectus approved by the Bank of Latvia. The approved Prospectus is available on the website of the Bank of Latvia (https://bank.lv/).
AS Longo Group
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Conclusion: Join the Movement
AS Longo Group’s bond offering presents a unique opportunity for investors looking to make a meaningful impact while also benefiting from an attractive fixed return. As the largest used car dealer in the Baltics, the company’s commitment to quality and transparency positions it for future success, making it an appealing choice for those interested in the automotive sector.
Participating in this bond issuance is not just about earning a high interest rate; it’s about contributing to the transformation of the used car market in the Baltics. With a strong financial foundation, experienced leadership, and a comprehensive strategy for growth and expansion, AS Longo Group is well-equipped to navigate the challenges ahead.
The upcoming investor webinar is an excellent chance to learn more about the offering and engage directly with the company’s leadership. Whether you’re a seasoned investor or just beginning your investment journey, this bond offering might be the perfect fit for your portfolio.
Get ready to steer your investment towards the future of the used car market—seize this opportunity and make a difference!
For more information, or to register for the webinar, visit: Investor Webinar Registration.
AS Longo Group