NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933) OR IN OR INTO ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW
PRESS RELEASE
Stockholm 18 November 2024
CTS Group, a Norvestor portfolio company, successfully issues senior secured bonds
Circular Tire Services Europe Holding (‘’CTS Group” or “the Company”) is a leading tire services company in the Nordics and Poland, offering a fully circular service for commercial vehicles. The Company is pleased to announce the successful inaugural issuance of senior secured bonds totaling SEK 1.3bn. The transaction marks a significant milestone for the company, providing a strong foundation for future growth driven by M&A and organic initiatives.
Net proceeds from the bond issue will be used to refinance existing debt and for general corporate purposes including M&A. The transaction will further enable CTS Group’s strategy to build a leading circular customer-centric tire services company in Northern Europe.
The bond issue received exceptional demand from high-quality institutional investors and the transaction was substantially oversubscribed. The bonds have a tenor of 5 years, a floating interest rate of STIBOR 3 months plus 525 basis points and will mature on 26 November 2029. The Company will apply for admission to trading of the new bonds on the corporate bond list of Nasdaq Stockholm within 12 months.
“We are thrilled with the success of our first bond issue”, says David Boman, CEO at CTS Group. “The strong and broad investor interest is a testament to our unique market position and business model and provides confidence in our strategy to build the leading circular, customer-centric tire services group. With additional funds in place, we can accelerate M&A and strategic investments.”
ABG Sundal Collier, Pareto Securities and SEB acted as joint bookrunners in connection with the issue of the new bond. Gernandt & Danielsson has acted as legal counsel for the joint bookrunners, and White & Case has acted as legal counsel for CTS Group.
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For further information, please contact:
David Boman, CEO, CTS Group
Email: david.boman@circulartireservices.com
Tor Erling Gunner, Partner, Norvestor Advisory
Email: te.gunnerod@norvestor.com
About CTS Group
CTS is the working name for a new circular, customer-centric tire services group. We help vehicle users maximize uptime and mileage by servicing tires in a convenient and life-extending manner. For commercial vehicle tires, we operate a fully circular model – extending the useful life of tires well beyond their normal lifespan.
We are home to 700 employees across Sweden, Finland, Norway, and Poland. We operate 40+ tire shops and 4 retreading facilities. Our mission is to keep society moving in a seamless, less wasteful way.
