Sorainen advises in connection with the financing of Apollo’s acquisition of Graanul Invest

Acting as local counsel in Estonia and Latvia through international law firm Paul, Weiss, Rifkind, Wharton & Garrison, we advised funds managed by affiliates of Apollo Global Management, in connection with a bond issuing comprising of EUR 250 million Floating Rate Sustainability-Linked Senior Secured Notes due 2026 and EUR 380 million 4.625% Sustainability-Linked Senior Secured Notes due 2026, as well as EUR 100 million senior secured revolving credit facility.

Bioenergy industry leader

The proceeds of the debut bond issuance helped to fund the acquisition of the majority stake in Graanul Invest (Graanul) by Apollo funds.

The transaction, completed on October 14, 2021, supports Graanul’s mission to provide sustainable biomass wood pellets as an environmentally friendly alternative to harmful fossil fuels. The deal also supports Graanul’s work toward reaching European renewable energy targets and positions the company, headquartered in Tallinn, Estonia, for continued international growth as a bioenergy industry leader.

Graanul is Europe’s leading biomass and bioenergy producer, which specialises in the production of wood pellets, a sustainable, low-carbon alternative to fossil fuels that are used for renewable power generation. Graanul operates 12 modern pellet production facilities in the Baltics and the US and six combined heat and power plants in Estonia and Latvia.

Our client team

Our team was led by counsel Jane Eespõld and senior associate Monika Tomberg in Estonia and by partner Rūdolfs Eņģelis in Latvia.

The team also included partner Paul Künnap, counsels Kaido Künnapas and Piibe Lehtsaar, senior associates Robin Teever, Britta Retel, and Kaspar Endrikson, associates Mirjam Metsik and Liisa Maria Kuuskmaa, assistant lawyers Karl Joonas Kendla, Jelizaveta Lazonen and Roberta Mark in Estonia, and counsels Santa Rubīna and Aija Lasmane in Latvia.

Acting as local counsel in the Baltics through Allen & Overy’s London office, we also advised Apollo on acquiring a majority stake in Estonian-based Graanul, see more here.