Pioneer Public Properties gets holder consent to add call to floaters

By Susanna Moon

Chicago, June 22 – Pioneer Public Properties AS obtained holder approval to add a call option to the floating-rate senior secured bonds due 2018 issued by Pioneer Public Properties II AS.

At the meeting held Wednesday, there were enough holders to form a quorum and the measure obtained 100% of the votes cast, according to a notice.

As announced June 8, the company was proposing to amend the notes so that it could redeem them starting on June 22 at 105.75% of par plus accrued interest.

Holders of more than two-thirds of the bonds had already indicated support for the change.

In order to pass, holders of at least two-thirds of the bonds had to be represented at the meeting and at least half needed to vote in favor of the amendment.

The request was part of a refinancing being carried out by Pioneer Public Properties.

Pioneer Public Properties plans to redeem the bonds issued by Pioneer Public Properties III AS by exercising the call option at 104% of par.

The company will also issue a new five-year bond with a size of between NOK 800 million and NOK 1 billion in the Nordic high-yield market.

Proceeds from that sale will be used to repay the subsidiaries’ bonds.

Pioneer Public Properties is a subsidiary of Pioneer Property Group ASA, an Oslo-based real estate company focused on providing high-quality properties for government-backed care-services.

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