Skandiabanken seeks bondholder approval of redemption in kind

By Marisa Wong

Morgantown, W.Va., Aug. 19 – Skandiabanken AB is proposing to exchange its existing covered bonds through a redemption in kind with new covered bonds, according to a notice.

Skandiabanken said it has decided to focus its banking business activities on the Swedish market and intends to transfer its Norwegian retail banking business to Midgard Prosjekt I ASA. The Norwegian company will be renamed Skandiabanken ASA and will be the issuer for the new covered bonds.

Completion of the redemption in kind is expected to occur on or around Oct. 5 but in any case no later than Oct. 12.

The issuer is seeking bondholders’ approval of the redemption in kind.

Bondholders will vote on the proposal at a meeting scheduled for Sept. 17 in Oslo.

The proposal needs the votes of bondholders holding at least 90% of the votes cast at the meeting or through a written procedure.

Bondholders representing half of the covered bonds must attend the meeting or participate in the written procedure in order to form a quorum.

The issuer is offering a one-time consent fee of 0.025%.

The covered bonds were issued under the Swedish internet banking company’s SEK 40 billion covered bond program.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.