J. Lauritzen tenders for $20 million of floaters at 95, asks to extend

By Susanna Moon

Chicago, Feb. 24 – J. Lauritzen A/S began a tender offer for up to $20 million of its NOK 500 million floating-rate senior bonds due 2017.

The cash purchase price for the tender will be 95% of par plus accrued interest.

The company also is asking holders to amend the bond agreement at a meeting set for March 14 in Oslo.

Specifically, Lauritzen is looking to extend the maturity of the bonds to Oct. 24, 2021, according to a company notice.

The tender offer will remain open until 6 a.m. ET on March 8, with settlement to be announced by the long stop date of June 14.

Bondholders who send tender and voting instructions or consent voting instructions in favor of the proposal before 6 a.m. ET on March 8, the early consent fee date, will receive an early consent fee of 1%.

All bondholders will receive an amendment fee of 2% if the proposals pass and the closing conditions are met.

Holders who vote in person or are represented by proxy at the meeting or who send votes directly to the trustee will be ineligible to receive the early consent fee.

The deadline for sending consent voting instructions is 6 a.m. ET on March 13.

The tender and paying agent is Nordea Danmark (+45 6161 2996 or nordealiabilitymanagement@nordea.com). The solicitation agents are Danske Bank A/S (+47 2286 1387 or sfj@danskebank.com), Nordea Danmark (+45 6161 2996 or nordealiabilitymanagement@nordea.com) and Skandinaviska Enskilda Banken AB (publ) (+47 2282 7014 and arild.pettersen@seb.no).

“The dry bulk markets have for some time been experiencing a difficult business environment, which has adversely impacted the issuer’s financial performance, and the issuer has responded by undertaking various initiatives to mitigate this situation, including sourcing substantial support in 2016 from Lauritzen Fonden,” according to the company announcement.

As a result, the issuer is “working on several initiatives to further strengthen the balance sheet and reduce its financial obligations going forward.”

The issuer said it has begun talks with “stakeholders to find a sustainable long term solution that includes contributions and support from all stakeholder groups, including an injection of $30 million in cash equity from its owner, Lauritzen Fonden, and an amortization reduction and maturity extension by its secured lenders.”

The maturity extension would be part of a long-term solution, the company said.

J. Lauritzen provides ocean transport solutions and is based in Copenhagen.

© 2015 Prospect News.
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