Lauritz.com aims to restructure SEK 325 million floaters, lacks funds

By Susanna Moon

Chicago, Feb. 6 – Lauritz.com A/S is asking holders to approve restructuring its SEK 324,999,625 floating-rate senior secured bonds due June 17, 2019 by way of written procedure.

The voting deadline is 9 a.m. ET on Feb. 25. The record date is Feb. 11.

“The proposal includes an extension of the term as well as a reduction of the aggregate nominal amount and the interest rate,” according to an announcement by the company.

The maturity would be pushed out to Dec. 17, 2024, the principal amount would be reduced to SEK 200 million and the coupon would be amended to a blended rate from a floating rate, according to a separate notice by Nordic Trustee & Agency AB.

The issuer is seeking amendments to the bond terms because it lacks the liquidity required for the redemption, the trustee noted.

The restructuring is conditioned upon the provision of certain additional securities, including a pledge in Chateau Vignelaure in Provence, the release added.

The proposed amendments include the following:

• Write-down of the principal amount of each bond to SEK 481,927 from SEK 764,705, resulting in a remaining outstanding aggregate principal amount of SEK 199,999,705 (after the cancellation of 10 bonds, nominally SEK 7,647,050, held by the issuer;

• Interest would be changed from a floating rate of Stibor plus 750 basis points to a coupon with a blended rate in which about SEK 70 million principal amount is 7½% and SEK 130 million principal amount is 4%;

• Add obligation of the issuer to pursue a sale of the shares in lauritz.com Sverige AB, and a right of the holders to carry out the sale, owning 49% of the shares in Stockholms Auktionsverk (but excluding the auction houses in Helsingborg, Malmo and Goteborg);

• Add a special redemption if the shares in Lauritz.com Sverige AB are sold;

• Add scheduled periodical redemptions;

• Delete obligation to fulfill financial covenants; and

• Provide additional security to secure the bonds.

The issuer is also asking for waivers under the financial covenants to meet the maintenance test on specific dates as well as for any events of default that may occur.

As part of the proposal, the issuer is offering additional security.

To form a quorum, holders representing at least 20% of the adjusted nominal amount must participate in the written procedure. To pass, the amendments require a majority of at least two-thirds of the votes cast.

“The issuer has for more than a year sought to obtain additional liquidity by way of loan capital and/or equity capital. However, due to the decrease in auction turnover and the effect on the results of the issuer this has not been possible, and it seems unlikely that a refinancing can be achieved prior to June 17,” the release noted.

For questions, email voting.sweden@nordictrustee.com.

Five holders representing 48.05% of the adjusted nominal amount of the bonds have agreed to vote in favor of the proposal.

The notes were issued in 2014.

Lauritz.com operates online auction services through its trading platform based in Soborg, Denmark.

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