BWG Homes parent gets noteholder OK to redeem notes due 2016, 2018

By Toni Weeks

San Luis Obispo, Calif., Sept. 12 – OBOS BBL received approval to redeem BWG Homes ASA’s senior unsecured bonds due 2016 and 2018 at a joint noteholder meeting held Friday in Oslo, according to a notice from trustee Nordic Trustee ASA.

There were sufficient bondholders present at the meeting to form a quorum. Noteholders voted separately on the proposals, passing the proposal to redeem the 2016 notes with a 97.38% approval rate and the proposal to redeem the 2018 notes with a 96.82% approval rate. The redemptions will occur Oct. 1.

As previously noted, OBOS acquired BWG in June and needed noteholder approval to redeem the two series of notes, whose original terms did not include any call right for the issuer.

The redemption price will be 107.7% of par for the notes due 2016 and 110.3% of par for the notes due 2018, in each case plus accrued interest.

The redemptions are part of OBOS’ goal to simplify its capital structure by having all bond financing at the parent level instead of at its subsidiaries.

In order to approve the proposal for a series of notes, at least half of the notes of that series needed to be represented at the meeting and at least two-thirds of the bonds represented had to be voted in favor of the proposal.

BWG Homes is a homebuilding company based in Oslo.

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