Telio changes proposed amendment to unsecured bonds due 2017

By Jennifer Chiou

New York, Jan. 30 - Telio Holding ASA announced an update to the proposed amendment to its senior unsecured bonds due 2017.

The company is seeking holder approval to redeem the bonds at a Feb. 5 meeting as part of its financial debt restructuring.

Telio is now proposing a call price of 109.5, up from 108.5, plus accrued interest to the March 7 call date.

According to a prior notice from trustee Norsk Tillitsmann ASA, the 108.5 redemption price implied an extra cost of NOK 25.5 million. As reported, the one-off cost will be offset by lower financial expenses within about 24 months, and the new financing reduces financial expenses by about 60% over the loan term, the company said.

The call must be approved by two-thirds of the bondholders at the meeting.

The company said it has agreed on amended loan facilities with Nordea, with the new financing comprising a five-year term loan of NOK 250 million and a NOK 75 million overdraft facility.

The VoIP service provider is based in Oslo.

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