Lauritz asks bondholders to approve Kr 15 million super senior loan

By Angela McDaniels

Tacoma, Wash., May 28 – Lauritz.com Group A/S is seeking bondholder approval to put in place a credit facility that would rank above the bonds in the corporate debt structure, according to a company news release.

A holder who holds about 22% of the bonds has agreed to provide a Kr 15 million credit facility to the company until the end of 2020.

The credit facility will be provided on a super senior loan basis, meaning that the bonds will rank second to the credit facility. As such, the company needs approval by the holders with a two-thirds voting majority (only among the holders who are voting).

Based on indications from holders representing close to 50% of the bonds, the company believes it “very likely” that holders will grant the required approval.

The credit facility will be used to strengthen the company’s business.

As previously reported, the bondholders approved a restructuring of the bonds in February.

In the latest news release, the company said the restructuring will likely be effected when the credit facility is approved if “material unforeseen circumstances have not occurred.”

Under the terms of the restructuring, the maturity will be extended to Dec. 17, 2024 from June 17, 2019, the principal amount will be reduced to SEK 199,999,705 from SEK 324,999,625, and the coupon will be changed from a floating rate of Stibor plus 750 basis points to a blended rate in which about SEK 70 million principal amount is 7˝% and SEK 130 million principal amount is 4%.

The terms of the restructuring also include scheduled periodical redemptions and additional security to secure the bonds, among other things.

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

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