Havyard collects votes to amend NOK 150 million bonds, extend to 2018

By Susanna Moon

Chicago, June 30 – Havyard Group ASA obtained the needed votes to amend its NOK 150 million of senior bonds, issue 2014/2017, at the meeting held Thursday.

There were enough holders to form a quorum, and the proposed amendments garnered support from 85.56% of those represented at the meeting, according to a notice from trustee Nordic Trustee ASA.

As announced June 16, Havyard sought to extend the bonds and to amend the note terms in response to the challenging oil industry conditions.

In return, the interest rate would be raised to 7% from 5½%.

Because of funding issues, Havyard also proposed the following changes to the bond terms:

• Extending the bonds’ tenor by 18 months to Dec. 13, 2018 from June 13, 2017;

• Allowing the issuer to prepay the bonds in quarterly installments beginning in June. The installments would be pro rated at 100% of par in an amount of NOK 8,213,385, or 6¼% of the outstanding bonds;

• Adding a call option for some of the bonds at par plus accrued interest from March 13, 2018 to the new maturity;

• Reducing the maximum borrowing limit to NOK 150 million;

• Including a cash sweep repayment mechanism; and

• Splitting the 300 bonds with a face value of NOK 500,000 into 150 million bonds with a face value of NOK 1 in order to facilitate an exchange offer.

The changes required approval from holders of two-thirds of the voting bonds represented at the meeting. To form a quorum, a minimum of 50% of the voting bonds needed to be represented.

The financial adviser is Fearnley Securities AS (+47 22 93 6377 or p.lauvang@fearnleys.no).

Exchange offer

Within one month of the meeting, the issuer said it will offer to exchange some of the bonds for Havyard shares. In all, the company will offer to issue about 2,252,830 new shares at a subscription price of NOK 8.25 in the exchange.

Havyard said it had entered into guarantee agreements with holders of about NOK 18.59 million of the bonds.

The fully integrated ship technology company’s headquarters are in Fosnavag, Norway.

© 2015 Prospect News.
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