Steen & Strom bondholders approve replacement of bond security

By Angela McDaniels

Tacoma, Wash., Nov. 13 - The holders of Steen & Strom AS' NOK 725 million of floating-rate senior secured bonds due 2017 consented to some changes to the bond agreement, according to a notice from bond trustee Norsk Tillitsmann ASA.

The company asked 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. Because bondholders approved the proposal, that center will be replaced with Gulskogen Kjopesenter in Drammen, Norway.

According to the company, Gulskogen Kjopesenter is worth about NOK 200 million more than Stovner Senter. Once 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 voted on the proposal at a meeting in Oslo at 7 a.m. ET on Nov. 13.

Enough bonds were represented at the meeting to form a quorum, and 100% of the votes were cast in favor of the proposal.

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

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