Arsenal Industrial bond issue

About Arsenal Industrial

Arsenal Industrial is a Latvian construction equipment rental and sales company headquartered in Riga and founded in 2014. The Company operates in Latvia and Lithuania through two rental locations in Latvia and one rental location in Lithuania, employing more than 64 skilled professionals and maintaining a strong digital focus.

The Group offers a broad range of sub-10-ton construction equipment, including lifts, road construction equipment, tools, compaction equipment and concrete machinery, supported by a transportation fleet capable of delivering equipment ranging from compact machines to larger excavators. Arsenal operates an extensive fleet of more than 2,700 fixed assets and 25,000 stock items, with a total purchase value of EUR 14m, and executes more than 20,000 rental contracts annually. In 2025, the Company served nearly 3,000 active customers, primarily B2B construction companies, while more than 50% of deals were concluded remotely through its digital sales and customer service channels. Arsenal has an established market position in selected equipment categories, ranking as the #1 seller of mini-excavators in Latvia in 2024 and 2025, with earthmoving and tractor equipment accounting for 44% of revenue in 2025. The Company generated EUR 11.2m in revenue in 2025, representing 3.8% year-over-year growth, while EBITDA increased to EUR 1.6m, corresponding to a 14.3% EBITDA margin. In Q1 2026, revenue reached EUR 2.6m, up 13.1% year-over-year, while EBITDA increased 3.8x to EUR 0.3m.

Presentation: https://signetbank.com/wp-content/uploads/2026/05/Arsenal-Industrial-Bond-Investor-presentation-12-May-2026.pdf

Additional information: https://signetbank.com/wp-content/uploads/2026/05/Arsenal-Industrial-teaser-ENG.pdf

Term Sheet

Issuer

SIA Arsenal Industrial (Latvia)

Security type

Secured bonds

ISIN

LV0000111623

Offering size

EUR 3,000,000

Offer type

-Public offering to new investors
-Exchange offering to existing LV0000860153 bondholders (1:1)

Exchange premium

1.0% rollover premium for exchanging existing bonds for new bonds

Coupon rate, frequency

12.0%, fixed, paid monthly

Maturity

3 years

Principal repayment

Maturity date, bullet

Call Option

-After the 1st year – @102%,
-After the 2nd year – @101%,
-6 months before maturity – @100%

Put Option

@101% in Case of Change of Control and / or FlyCap exit

Nominal value & min. subscription

EUR 1,000

Collateral

2nd ranking commercial pledge on:

-The Issuer’s assets;
-The Issuer’s shares (AS Klucīši);
-The assets of subsidiary Arsenal UAB.

Use of proceeds

Refinancing of existing bonds

Financial covenants*

-Adjusted Equity ratio: min 15% from Q4 2026
-Net Debt / EBITDA: max 5.0x from Issue Date; max 4.0x starting from 01.01.2029
-ICR: min 1.5x

Collateral Agent

Vilgerts ZAB (Latvia)

Lead manager

Signet Bank (Latvia)

Listing

Nasdaq Riga First North Market within 3 months after the Issue Date

*Full list of undertakings can be found in the Information Document

Where to invest?