I.M. Skaugen offers to pay cash, notes for NOK 150 million bonds

By Susanna Moon

Chicago, Sept. 23 - I.M. Skaugen SE said it is offering to repurchase/exchange up to NOK 150 million principal amount of its bonds.

The company said it will pay par for the bonds, with half of the value in cash and half in a new bond issue.

The new bond issue is due March 29, 2013 and has a coupon of Nibor plus 800 basis points.

Holders also will receive accrued interest in cash.

If the company receives tenders for more than NOK 150 million of bonds, each bondholder's allocated volume will be reduced pro rata, rounded off to the nearest whole NOK 500,000, according to a company press release.

The offer will end at 11:30 a.m. ET on Sept. 27 and settle on Sept. 30.

Bondholders interested in the offer may contact Fearnley Fonds ASA or Per Bjørnar Fausa at + 47 22 93 63 66 or Thomas Berg-Nielsen at + 47 22 93 63 51 by 1:30 p.m. ET on Sept. 26.

The offer is part of an effort to mitigate liquidity risk in 2012, and the cash repayment of up to NOK 75 million will also improve the company's book equity ratio and bring it closer to the stated goal of a ratio above 30%, the release noted.

After settlement, the remaining outstanding bond portfolio includes NOK 293.5 million of bonds due June 2012, NOK 150 million of bonds due September 2012, NOK 350 million of bonds due March 2013 and the new NOK 75 million of notes due March 2013.

I.M Skaugen is a marine transportation service company engaged in the transportation of petrochemical gases and chemicals and is based in Oslo.

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