Olav Thon seeks to move up maturity of 2024 bonds; 101.148 price set

By Marisa Wong

Los Angeles, Sept. 17 – Olav Thon Eiendomsselskap ASA issued a notice of a written bondholders’ resolution relating to its senior secured bonds, issue 2019/2024 (ISIN: NO0010844459).

The company is seeking bondholders’ approval of a proposal to amend the maturity date of the bonds and the redemption price.

Specifically, the company is proposing to make the maturity date Sept. 29, 2021 and the redemption price 101.148 plus accrued interest.

According to an announcement on Friday, holders of more than 95% of the voting bonds have informed the issuer that they support the proposal.

The company had announced a voluntary buyback offer of the outstanding bonds on Sept. 7. The bond issue is secured with a pledge in the shopping center Bergen Storsenter in Bergen, Norway. In September 2019 the company changed its funding strategy from issuing secured bonds to issuing unsecured bonds. Because the 2019/2024 bond issue is a small pledged bond, the company wants to buy back and redeem the entire outstanding amount.

As previously reported, Olav Thon offered to buy back the NOK 300 million outstanding secured bonds due March 14, 2024. As an alternative, bondholders could subscribe, for all or parts of their holdings, in Olav Thon’s senior unsecured bonds, issue 2021/2024, due June 3, 2024 (ISIN: NO0011008997) with an outstanding amount of NOK 500 million.

The buyback and/or exchange offer was open until 10 a.m. ET on Sept. 8.

Questions may be directed to Torgeir Tronstad at Torgeir.tronstad@olavthon.no or +47 920 23 386 or Jan Krogh-Vennemo of DNB Markets at jan.vennemo@dnb.no or +47 24 16 90 15.

The commercial real estate company is based in Oslo.

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