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Det norske seeks holder consent to amend unsecured floaters due 2020
By Jennifer Chiou
New York, March 18 – Det norske oljeselskap ASA is asking holders of its floating-rate senior unsecured bonds due 2020 to give authorization for proposed changes to the bond agreement, according to a notice from Nordic Trustee ASA.
The issuer is looking to amend the bond agreement in order to, among other things, remove the adjusted equity ratio covenant, include a new leverage ratio covenant of no greater than 3.5 times and a new interest cover ratio covenant of no less than 3.5 times, reduce the remedy period for financial covenant breaches by 90 days, include a new disposal of assets restriction related to the Johan Svendrup field and add a one-time option for holders to put back their securities at 101 pus accrued interest.
In consideration, Det norske is offering an interest bump of 1.5%, up to a rate of Nibor plus 650 bps, and a consent fee of 1%.
The company completed its acquisition of Marathon Oil Norge AS in October 2014. It stated that it has substantially improved its credit profile through this acquisition.
Det norske said in the notice that the proposed ratios more accurately and immediately reflect its financial performance.
A bondholders’ meeting will take place in Oslo on April 1. At least half of the voting bonds must be represented at the meeting to form a quorum, and at least half of those voting must vote in favor of the resolution in order for approval.
Questions may be directed to Nordea Markets Fixed Income Sales at 47 22 48 77 82.
Based in Trondheim, Norway, the issuer is an oil exploration and development company focusing petroleum resources on the Norwegian Continental Shelf.
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