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Construction & Engineering Services

Sakret Holdings has completed a refinancing of existing bank liabilities

October 2019 — Sakret Holdings has completed a refinancing with Luminor Bank to secure future growth plans.

Sakret Holdings is a Latvia-based group operating under the global Sakret franchise. The company produces dry ready-made mixes and liquid mixes for the construction industry, such as tile adhesives, masonry and repairing mortars, dry concrete, and external thermal insulation component systems (ETICS). The company is among the largest producers of ready-mix construction materials in the Baltics with over 25% market share in all three countries. The company operates four production plants in the Baltics: two in Riga, Latvia, one in Kedainai, Lithuania, and one in Paide, Estonia. Sakret's plant in Lithuania is the largest production plant of dry construction mixes in the Baltics.

Our role in the transaction

Oaklins' team in Riga advised both Sakret Holdings and their former bank – Luminor Bank – on a complex transaction to refinance the existing debt liability with the bank. To establish a market price for equity, a sale process was run with selected strategic investors. Once Sakret Holdings and Luminor bank agreed on the haircut amount for the loan, Oaklins' team advised on the best debt structure and approached regional banks and alternative financing providers for their offers.

“Oaklins’ contacts and experience in refinancing and deal structuring was of high value as they were able to quickly identify that simple senior or mezzanine loan structure would not be the most favorable option for us. At the end Oaklins helped us to structure the deal with both senior financing and high-yield corporate bonds.”

Andris Vanags

Chairman of the Council, Sakret Holdings

Talk to the deal team

Valērija Lieģe

Partner
Riga, Latvia
Oaklins Baltics

Reinholds Razums

Associate Partner
Riga, Latvia
Oaklins Baltics

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