Lauritz asks holders to release property pledge for sale, lease-back

By Susanna Moon

Chicago, June 3 – Lauritz.com A/S said it is seeking to amend its SEK 425 million of outstanding SEK 550 million senior secured callable floating-rate bonds due 2019.

Holders must submit the voting forms by 11 a.m. ET on June 22. The record date is June 10.

The issuer is requesting to release the security given under the owners mortgage pledge agreement, according to a company notice.

The company said that it entered into a conditional sale and lease-back agreement on May 20 for its property located at Rovsingsgade 68, Copenhagen. Under the agreement, the buyer will purchase the property and lease it back to the issuer. Prior to the transfer, the issuer will refurbish the property sometime in 2017.

As part of the agreement, Lauritz said it committed to a customary lease agreement that cannot be terminated the first 15 years.

In return for approval, the issuer is offering bondholders a partial repayment of the bond in the amount of SEK 100 million at a rate of 104 to be distributed pro rata among all bondholders.

The company said it would make the partial repayment if it obtains the required approval from a majority of bondholders.

Another condition to the amendments and the release of the pledge over the property is listing of shares of parent company Lauritz.com Group A/S on Nasdaq First North Premier on June 9.

In order to form quorum, bondholders representing at least 20% of the adjusted nominal amount must reply to the request under the written procedure. To pass, the measure requires a majority two-thirds of consents.

The floaters were issued 2014.

Nordic Trustee & Agency AB (mail@nordictrustee.se or +46 8 783 79 00) is the agent.

Søborg, Denmark-based Lauritz operates an online auction platform as well as auction houses for consumers.

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