By Rebecca Melvin
Concord, N.H., Sept. 1 – SGL International A/S and TransGroup Global Inc. have placed €40 million subordinated unsecured bonds with a four-year tenor, according to a company release on Wednesday.
The bonds will carry payment-in-kind interest.
Proceeds will be used to finance general corporate purposes including acquisitions, investments and repayment of drawn amounts under the group’s working capital facilities.
SGL is also mulling a subsequent bond for up to €75 million under the framework of its outstanding senior secured fixed-rate bonds (ISIN: SE0015810759), subject to market conditions.
The proceeds from the senior bond would also be used to finance general corporate purposes, including acquisitions, investments and repayment of drawn amounts under the group’s working capital facilities.
Consent bid
Following completion of the subordinated bond issue, SGL plans to initiate a written procedure to request that holders of the group’s up to €350 million of existing senior secured bonds (ISIN: SE0015810759) and up to €350 million senior secured bonds (ISIN: SE0013101219) vote in favor of some amendments to the bonds.
The proposed amendments to the intercreditor agreements and terms and conditions of the senior bonds would permit a subsequent bond issue and the use of certain cash currently held on escrow for other acquisitions than those communicated in conjunction with the group’s previous bond issue, as well as clarifty the calculation of permitted drawings under the group’s working capital facilities.
In exchange for the bondholders’ approval, some shareholders have committed to inject a minimum of $35 million of equity to support SGL growth.
The group said it has engaged in discussion with the largest holders of senior bonds who have expressed support for the written procedure.
Pareto Securities has been retained as bookrunner and financial advisor and Roschier Advokatbyra has been retained as legal advisor in connection with the subordinated bond issue, the written procedure and subsequent bond issue.
The freight forwarding company is based in Denmark.
| Issuer: | SGL International AS and TransGroup Global Inc.
|
| Issue: | Subordinated unsecured bonds
|
| Amount: | €40 million
|
| Maturity: | Four years
|
| Bookrunner: | Pareto Securities
|
| Coupon: | PIK interest
|
| Distribution: | Privately placed
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
