Handelseiendom seeks bondholder approval to amend, extend floaters

By Susanna Moon

Chicago, Dec. 19 – Handelseiendom II AS is seeking bondholder approval to amend its floating-rate notes, step C, due Jan. 13, 2015.

A bondholder meeting has been set for Jan. 8 in Oslo.

The company is asking holders to authorize it to repay NOK 49.5 million, reducing the outstanding amount to NOK 84,832,688 from NOK 134,332,688, according to a notice to bondholders.

The company also is seeking:

• To extend the maturity by two years to Jan. 16, 2017;

• To include a call option at 103 from Jan. 13, 2015 to Oct. 16, 2016 and at 104 after that; and

• To amend the redemption price at maturity to 104.

Also, if the company sells any of the properties included in its portfolios, with settlement from Jan. 13, 2015 to Jan. 16, 2017, 80% of the proceeds will be applied to repay the Nordea loan, 15% will be applied to redeem the notes and 5% will be released to strengthen liquidity to mitigate the reduced cash flow following the sale.

The consent fee will be 0.5%.

The notes were issued in 2007.

Pareto Securities AS is the adviser.

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