Selvaag Bolig seeks OK of 4¾% bondholders to pay interim dividends

By Susanna Moon

Chicago, Sept. 15 – Selvaag Bolig ASA said it is seeking to amend its NOK 500 million 4¾% senior bond issue 2013/2018 to clarify the dividend restriction clause.

The company is proposing to amend its dividend policy to interim or semiannual payments from just one annual payment, which is in line with other companies listed on the Oslo Bors, according to a company notice.

The note terms currently limit the company’s ability to make dividend payments, because of the timing of the required financial statements.

The company is seeking to make changes to allow the company to make interim dividend payments based on interim accounts, as long as the aggregate distribution does not exceed 50% of the issuer’s consolidated net profit after taxes, the release noted.

Selvaag also is seeking approval for an additional dividend payment of NOK 0.70 per share, which is expected to be paid by Oct. 15.

In return, the company is offering a one-time fee of 0.15%.

The adjustment would need approval of bondholders at a meeting to be held on Sept. 29.

The company said it has received commitments from the “largest holders of the bonds” to vote for the measure at the bondholders' meeting.

Selvaag Bolig is an Oslo-based housing and residential developer.

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