Pareto advises Func Food Group Oy on their successful placement of a EUR 38 million four-year senior secured bond

Pareto Securities Oy has advised Func Food Group Oy (“Func Food”), the leading functional food company in Finland, on their successful placement of a four-year EUR 38 million senior secured bond. The proceeds from the bond issue will be used to repay existing debt and to finance the acquisition of the Swedish company People’s Choice. People’s Choice is the exclusive distributor in Sweden of the popular functional beverage Celsius and the active fashion clothing brand Freddy.  

The bonds, maturing in June 2019, will bear a floating coupon of 3 months Euribor + 9.00% (paid quarterly). Listing of the bonds on NASDAQ OMX Helsinki will take place within 1 year of settlement.

The transaction was well received by the market, as evidenced by strong demand for the bonds and significant participation from both a Nordic and continental European investor universe. Altogether, more than 30 investors, both institutional and private, participated in the issue.   

”People’s Choice is a perfect match for us. Product offerings are complementary and the risk of cannibalisation is small. We will gain an extremely efficient sales organisation in Sweden covering all major retail chains, gyms and specialty stores. People’s Choice has done amazing work with Celsius just in a few years and I am confident that this is the best way to launch FAST and CocoVi products successfully into the Swedish market”, says Antti Pirinen, CEO of Func Food. 

For more information please contact Ville Takala, +358 9 8866 6023

Pareto Securities Oy is part of the Pareto Securities group. Pareto Securities Oy is an independent Finnish investment bank focused on the Nordic market. Pareto Securities Oy offers Finnish and foreign institutions, companies and private individuals investment services related to trading in stocks, derivatives and fixed income instruments, equity research and advisory services within corporate finance. The Pareto Securities group has a total of more than 350 employees, with its headquarters in Oslo and offices in Sweden (Stockholm and Malmö), Norway, Denmark, Finland, United Kingdom, France, USA, Canada, Singapore, Australia and Brazil.