West Atlantic seeks holder consents to make 8% bonds redeemable early

By Wendy Van Sickle,

Columbus, Ohio, Nov. 2 – West Atlantic AB is soliciting consents from holders of its SEK 700 million of 8% senior secured bonds due 2018 to amend the bonds so that they will become redeemable at any time, according to a Nordic Trustee notice.

Currently, the bonds are not redeemable until May 8, 2016. They are then redeemable at 104, which declines to 102 on May 9, 2017.

The proposed resolution would allow bonds to be redeemed at any time for a make-whole amount and full interest compensation before May 9, 2016, provided that bondholders have been given 10 days’ notice.

The make-whole amount would be the present value of 104% of par and remaining interest calculated using a discount rate of 50 basis points over the comparable Swedish government bond rate.

The company said the move would be a means of “increasing the flexibility of the financing structure, which has been identified as essential in order to execute the group’s business strategy.”

Consents are due by 11 a.m. ET on Nov. 16.

To achieve a quorum, holders representing at least 20% of the total nominal amount of the bonds must reply to the request.

To pass the measure, at least 75% of the nominal amount for which holders reply under the procedure in writing must give their consents.

The agent is Nordic Trustee & Agency AB (attn: Erik Saers/West Atlantic, +46 87 83 7900 or mail@nordictrustee.se).

The cargo airline company is based in Gothenburg, Sweden.

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