Helly Hansen seeks holder OK to redeem bonds after covenant breach

By Jennifer Chiou

New York, March 19 – Teodin Acquico AS (Helly Hansen) is in breach of the leverage covenant under the bond agreement for its senior secured callable bonds due 2017 based on preliminary 2014 management accounts and is seeking approval from holders to redeem the securities at 102 on April 7, according to a notice from Nordic Trustee ASA, the trustee for the notes.

The issuer said that this proposal is attractive for holders in light of its current performance. It noted that it is lagging in its revenue forecast and had unmet ambitions of reducing inventory by NOK 122 million during 2014.

The company will pay accrued interest to the April 10 settlement date if the proposal is approved.

The notice said that a quorum will be met if holders of at least 50% of voting bonds are represented at the meeting to take place in Oslo on April 7. The holders of at least two-thirds of the bonds represented at the meeting have to vote in favor of the proposal for it to pass.

The bonds were issued in 2012.

Helly Hansen is a Moss, Norway-based maker of outdoor sports apparel.

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