Storent Holding eyes US expansion with bond offering

Photo: Storent

Baltic-based equipment rental company AS Storent Holding is issuing new bonds as part of its strategy for expansion, including an exploration of the US market.

350,000 bonds will be issued, each valued at €100, with a 10% annual interest rate and a 3.5-year maturity.

Open to both retail and professional investors, the bonds will be listed on Nasdaq Riga. The subscription period runs from April 2 to 17, with settlement set for April 25.

With that, the company aims to raise up to €35 million through the issue, with proceeds earmarked for debt refinancing, fleet expansion, and acquisitions—specifically a potential deal in Texas.

Storent has signed a letter of intent to acquire a 70% stake in a Texas-based equipment rental company, which it said is a key step in its strategy to expand beyond the Baltics and Nordics.

Upon completing the deal, Storent plans to retain the current owners to preserve local knowledge and contacts.

It said it sees the US market as an attractive growth opportunity, with rental yields ranging from 40-45%, compared to 25-35% in the Baltics, Finland, and Sweden.

In addition to its US expansion plans, Storent said it remains focused on strengthening its position in the Baltic region and continuing its growth in Sweden, Finland, and other areas.

Earlier this year, the company announced plans to invest up to €20 million in fleet expansion before the peak season of 2025, following nearly €24 million invested in 2024.

Storent also fully upgraded its IT systems in 2024, implementing the Intelligent Rental Management Systems (IRMS), and achieved a 7% increase in annual revenue, reaching €47 million.

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Andris Pavlovs, co-founder and chairman of the Management Board of AS Storent Holding, said, “Investing in AS Storent Holding bonds offers investors the opportunity to participate in the growth of an innovative equipment rental company, a proven leader in digitalisation with demonstrated resilience in volatile market conditions.

“Previous investments have significantly modernized our IT systems and rental fleet, giving us competitive advantages, and fostering growth in the Baltic and Nordic regions. The next step is a carefully considered expansion into the world’s largest rental market — the United States — where our technological edge opens up substantial opportunities for further development.”

Kristiāna Janvare, managing director of Investment Banking of Signet Bank AS, added, “AS Storent Holding is an experienced issuer with a broad investor base of approximately 2,500 investors. With two successful public bond issuances already listed on Nasdaq, Storent demonstrates how a company can effectively leverage capital market funding to execute its growth strategy.

“The company has significant growth potential as an industry leader, which it can realise through this bond program. We are delighted that Baltic private investors again have the opportunity to participate in the bond offering with the minimum investment starting from EUR 100.”