Steen & Strom asks bondholders to OK replacement of bond security

By Angela McDaniels

Tacoma, Wash., Oct. 30 - Steen & Strom AS is asking the holders of its NOK 725 million of floating-rate senior secured bonds due 2017 to consent to some changes to the bond agreement, according to a notice from bond trustee Norsk Tillitsmann ASA.

The company wants to replace the property that secures the bonds and amend the bond agreement to allow inter-company loans within the corporate group.

The bonds are currently secured by Stovner Senter, a shopping center in Oslo. If bondholders approve the proposal, that center would be replaced with Gulskogen Kjopesenter in Drammen, Norway.

According to the company, Gulskogen Kjopesenter is worth about NOK 200 million more than Stovner Senter. If the former replaces the latter as the property securing the bonds, the loan-to-value ratio will be 50.36%, which is just above the minimum ratio required by the bond agreement.

Bondholders will vote on the proposal at a meeting in Oslo at 7 a.m. ET on Nov. 13.

At least half of the bonds must be represented at the meeting in order to form a quorum, and the holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal in order for it to pass.

Oslo-based Steen & Stom owns and operates shopping centers.

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