SGL International begins consent bids for two senior secured bonds

By Rebecca Melvin

Concord, N.H., Sept. 1 – SGL International AS has initiated consent solicitations with holders of its up to €315 million of its senior secured bonds due 2024 (ISIN: SE0013101219) and up to €350 million senior secured bonds due 2025 (ISIN: SE0015810759), which are being undertaken to amend intercreditor agreements and terms and conditions of the bonds.

The changes will permit a subsequent bond issue and the use of certain cash currently held on escrow for other acquisitions than those communicated in conjunction with the group’s previous bond issue, according to notices on Wednesday.

The voting requests began on Wednesday and expire at 11 a.m. ET on Sept. 27.

The record date for being able to vote is Sept. 6.

Approval representing at least 66 2/3% of the adjusted nominal amount of bonds is required to implement the adjustments.

The group has engaged in discussion with the largest holders of senior bonds, who have expressed support for the written procedures.

Under the proposed measures, bondholders would waive any potential default or event of default that may have occurred and will be remediated by way of repayments on the working capital facilities with proceeds from the issuance of subordinated bond on Sept. 6.

The company also announced on Wednesday that it placed €40 million subordinated unsecured bonds with a four-year tenor. The bond will carry payment-in-kind interest.

The issuer is mulling a subsequent bond for up to €75 million under the framework of its outstanding senior secured fixed-rate bonds (ISIN: SE0015810759), subject to market conditions.

The proceeds from the senior bond would be used to finance general corporate purposes, including acquisitions, investments, and repayment of drawn amounts under the group’s working capital facilities.

Intertrust (Sweden) AB (trustee@intertrustgroup.com) is the agent for the holders of the bonds.

Pareto Securities has been retained as sole bookrunner and financial adviser, and Roschier Advokatbyra has been retained as legal adviser in connection with the subordinated bond issue, the written procedure and subsequent bond issue.

The freight forwarding company is based in Denmark.

© 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.