TGS Baltic advised Poland investment fund and fund manager CVI regarding “unitranche” funding to “Arsenal Industrial”

03
10 / 18

Latvian construction machinery rental and trade company “Arsenal Industrial” have signed a deal for attracting 5.2 million euro bonds with the largest Central and Eastern European private debt fund manager CVI. The funding is attracted for the further growth of “Arsenal Industrial” in the Baltic and Polish markets.

Gints Vanags of “Arsenal Industrial”: “Our Company is still relatively new, founded in 2014, but has experienced rapid growth in recent years. We have grown to be one of the largest construction machinery rental companies in Latvia and we are currently expanding into neighbouring markets. In 2016, “Arsenal Industrial's” total annual turnover was 1.46 million euros, while this year we are planning to conclude a turnover of 6.4 million euros. Even more rapid growth is planned next year.”

Managing Director of CVI, co-manager of the private debt fund that invested into Arsenal, Radoslav Tausinger: “We are pleased to support development plans of a fast-growing company and secure it with additional capital. By becoming the primary debt investor of the company, we aim to help “Arsenal Industrial” to simplify its administrative processes, and further improve efficiency.”

“Arsenal Industrial” is one of the “Flycap AIFP's” portfolio companies. “Flycap AIFP” partner Ģirts Milgrāvis: “This is a significant deal because CVI has provided “unitranche” funding to help finance company's development plans.” CVI-managed fund has financed all the needs of the company, both by refinancing the existing loans to Latvian banks and by providing additional capital to enable “Arsenal Industrial” to grow even more rapidly. This deal demonstrates that successful Latvian companies have alternatives to attract financing outside of the market of Latvian commercial banks.” 

“Arsenal Industrial” was consulted by a corporate finance company “Auctus Capital”. 

Legal support to CVI was provided by TGS Baltic/SSW Solutions. TGS Baltic team was led by Inese Hazenfusa, Partner, and supported by Reinis Grunte, Associate.           

About “Arsenal Industrial”: “Arsenal Industrial” is a specialized construction and industrial machinery rental and trading company. It is based in Riga, and have branches in Estonia, Lithuania and Poland. More info: www.arsenalnoma.lv   

About “FLYCAP”: FlyCap is a venture capital fund that manages 15 million euro seed and growth capital fund. Its biggest investor is a development finance institution ALTUM. The fund has invested in more than 20 Latvian companies. More info www.flycap.lv

About “CVI”: CVI is a leading non-bank financing enterprise in Poland and the region of Central and Eastern Europe. The company, along with Noble Funds TFI, currently manages assets over EUR 1.3 billion in seven closed-end investment funds. More info: www.cvi.pl