Hexagon Composites to pay NOK 321.9 million to redeem bonds April 24

By Susanna Moon

Chicago, April 17 – Hexagon Composites ASA said it obtained approval from holders of its HEX02 bond issue due 2018 for an early redemption of the NOK 300 million issue at a premium.

The bondholder meeting was held April 17 at 7 a.m. ET, as announced March 27.

At the meeting, holders were asked to approve amending the terms of the bonds to shorten the maturity to April 24, 2015.

The redemption price will be 107% of par plus accrued interest.

The proposed resolutions were adopted according to the voting requirements of the bond agreement, according to a company notice.

The total amount to be repaid, including buyback premium and accrued interest, will be NOK 321.9 million on April 24, the company said.

The company said it also secured extended financing facilities from Skandinaviska Enskilda Banken AB and DNB Bank ASA in a club deal, which will extend financing capacity, of NOK 685 million, to NOK 1 billion on an unsecured basis.

The new five-year facility will incorporate a revolving credit facility for up to NOK 685 million as well as a term-loan facility for up to NOK 315 million.

“The terms on the new facilities allow significant savings in debt servicing cost through attractive pricing and increased flexibility, while increasing our capability to finance acquisitions,” David Bandele, the company’s chief financial officer, said in the company press release.

More details

Hexagon previously described the proposal as “an attractive and a fair compensation,” noting the price is a premium to trading levels in the secondary market. It represents a spread to maturity of 271 basis points and a spread to the first call of 313 bps, the company added.

Hexagon explained that it sought the amendment because it expects to need increased flexibility in its debt going forward.

“Due to the low activity level for new issues in the Norwegian high-yield market, Hexagon is evaluating other sources of capital, including increased bank financing which implies refinancing of the bond issue HEX02,” the company said in a notice.

The company had NOK 202 million in cash at the end of 2014 in addition to an undrawn revolving credit facility.

Hexagon is an Aalesund, Norway, maker of lightweight composite cylinders for the storage and transportation of compressed gas.

© 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.