Handelseiendom gets bondholder approval to amend, extend floaters

By Toni Weeks

San Luis Obispo, Calif., Jan. 8 – Handelseiendom II AS obtained bondholder approval to amend its floating-rate notes, step C, due Jan. 13, 2015, according to an announcement from trustee Nordic Trustee ASA.

A bondholder meeting was held on Jan. 8 in Oslo, at which there were sufficient bondholders present to form a quorum, and the proposed resolution received 94.69% of the votes.

The company had asked holders to authorize it to repay NOK 49.5 million, reducing the outstanding amount to NOK 84,832,688 from NOK 134,332,688, as previously reported.

The company also was seeking the following:

• 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 is 0.5%.

The notes were issued in 2007.

Pareto Securities AS was the adviser.

The company is a subsidiary of Maud Eiendom ASA, an Oslo-based property company that manages and leases real estate within the retail and logistics segments.

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