Emerging Europe seeks changes to bond terms amid impending maturity

By Caroline Salls

Pittsburgh, Feb. 14 - Emerging Europe Land Development AS asked the holders of its 15% callable bond issue 2013/2014 and 25% callable bond issue 2012/2014 to amend the terms of the bond issues, according to a notice from bond trustee Norsk Tillitsmann ASA.

Specifically, the company is asking bondholders to increase the total amount of the 15% bond issue to NOK 96 million from NOK 70 million and extend the maturity date from March 1, 2017 from March 3, 2014.

In addition, Emerging Europe wants bondholders to reduce the interest rate on the 25% bonds to 15% and extend the maturity date on those bonds to March 1, 2017.

Emerging Europe said the grand opening of its commercial shopping center Lumini is drawing near, and it does not have the funds available to repay the bonds on the current March 3 maturity date.

The company also said the 25% interest rate is a "significant amount" for it.

The requested increase would allow the company to issue additional tranches to fund the continued development of the shopping center and Emerging Europe in general.

A bondholders' meeting is scheduled for Feb. 28.

Emerging Europe is a property investment and real estate management services company based in Oslo.

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