Blom's restructuring of 2009 bonds to settle soon; 2011 bonds amended

By Angela McDaniels

Tacoma, Wash., May 23 - Blom ASA will soon complete its restructuring plan, according to a notice from bond trustee Norsk Tillitsmann ASA.

As previously reported, the holders of Blom's senior bond issue 2009/2012 and senior bond issue 2011/2012 approved the restructuring at an April 24 meeting.

The 2009 bond issue will be converted into Blom shares at par plus accrued interest to April 24. The company expects to deliver the shares on May 30, according to the notice.

The conversion applies to all bondholders who did not tender their bonds into an earlier exchange offer.

The shares will be delivered after the company's one-for-100 reverse share split, and the conversion price is NOK 10. The number of shares to be delivered per NOK 1 of bonds is 0.100828.

Exchange offer

The 2009 bondholders were previously offered the right to exchange their bonds for new 2% subordinated convertible bonds due April 30, 2017 at an exchange ratio of 31 new bonds for every 100 existing bonds converted.

The exchange offer ended April 19. The new convertibles are expected to be delivered on May 24.

The initial conversion price for the new convertibles will be 20% above the volume-weighted average trading price of Blom's shares on the first two trading days after an April 25 extraordinary general meeting.

The exercise period of the new convertibles will run through April 30, 2014.

The exchange offer was subject to a maximum principal amount of NOK 40 million, meaning the maximum size of the new convertibles was capped at NOK 12.4 million.

2011 bond changes

In addition, the terms of the 2011 bond issue have been amended as follows:

• The maturity date was extended to April 30, 2015 from June 4, 2012;

• The margin was changed to 5.5% from 11%;

• An existing intercreditor agreement will terminate upon conversion of the 2009 bonds;

• A €5 million guarantee from Blom CGR SpA was released;

• A bank account pledge was released; and

• The trustee was authorized to enter into an intercreditor agreement with Blom that includes provisions for the full subordination of the 2011 bonds, except for payment of ordinary interest if no default has occurred, and no enforcement rights on the 2011 bond issue while the new bond issue is outstanding.

Oslo-based Blom provides geographical information and services.

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