Otium holders approve extension of NOK 100 million bonds to 2017

By Angela McDaniels

Tacoma, Wash., March 31 – Otium AS received bondholder approval to extend the maturity date of its NOK 100 million senior bond issue and make other changes, according to a notice from trustee Nordic Trustee ASA.

A bondholder meeting was held on March 31 in Oslo. There were enough bondholders present to form a quorum, and 77.84% of the votes were cast in favor of the proposed resolution.

Now that it is has secured approval, the issuer will make the following changes:

• Extend the maturity date to March 31, 2017 from March 31, 2015;

• Pay interest in cash or in kind, with interest due on the original maturity date to be paid in cash.

For cash payments, the interest rate will be three-month Nibor plus 500 basis points, payable annually. For PIK payments, the interest rate will be three-month Nibor plus 800 bps, payable upon redemption of the bonds or at maturity;

• Amend the call option structure so that the call price gradually increases from the first year until maturity.

The call price will be 102 in the first year, stepping up to 103 on July 31, 2016, to 105 on Oct. 31, 2016 and to 107 on Jan. 31, 2017. The bonds will mature on the extended maturity date at 107% of par; and

• Change the denomination of each bond to NOK 1 from NOK 1,000.

The company said it has been adversely affected by a combination of negative mark-to-market valuations on an interest-rate swap, loss on financial investments, cost overruns and significantly delayed asset realizations, which have led to a weakened balance sheet and a restrained liquidity situation for the group on a consolidated basis.

The issuer also offered to buy back the bonds at 30% of par plus accrued interest. The offer was open from March 18 until March 30, with settlement to occur March 31. The buyback offer was conditional on the bondholders voting in favor of the proposals.

Otium is a property developer in the residential, commercial and leisure market. The company is based in Stavanger, Norway.

© 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.