Frigaard Property makes progress on refinancing 2024 bond

By Marisa Wong

Los Angeles, Dec. 5 – Frigaard Property Group AS (FPG) issued an update on Tuesday relating to the refinancing process of two outstanding bond issues due 2024.

In September, parent company Frigaard AS announced fixed-income investor meetings ahead of a proposed NOK 550 million senior secured floating-rate bond issue. Proceeds from the potential bonds were to be used to repay the outstanding bonds due Feb. 10, 2024 (ISIN: NO0010922818) issued by FPG and the bonds due May 5, 2024 (ISIN: SE0015938493) issued by another subsidiary, North Investment Group AB.

As part of the planned refinancing, Frigaard received a commitment from Pareto Bank ASA for a new NOK 150 million super senior revolving credit facility. The revolver is subject to a successful refinancing of the existing 2024 bond issues and will mature six months prior to the new bond issue.

According to Tuesday’s announcement, FPG has now raised funds to repay its bond issue (ISIN: NO0010922818) in full on the due date. The company will use proceeds from a stock sale and a bank loan commitment.

FPG signed a letter of intent on Monday to sell all of its shares in its subsidiary, Alento AS, following a bid from a company within the same industry.

In addition, FPG has received a bank commitment of NOK 140 million.

The same bank lender has also committed a new construction loan of NOK 110 million to partly pay down existing construction/plot loans and to complete the Fagerlia project (step 3) in Fredrikstad. The total bank commitment of NOK 250 million is subject to the bank’s board approval on Dec. 20, the company noted.

The buyer of Alento is expected to conclude the due diligence in December, and the parties are targeting to sign the share purchase agreement early January 2024 at the latest, with closing around the end of January.

The housing developer is based in Borgenhaugen, Norway.

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