Hurtigruten doubles waiver fee offered to holders of 7% bonds

By Angela McDaniels

Tacoma, Wash., Jan. 14 - Hurtigruten ASA increased the waiver fee it is offering to the holders of its 7% senior callable bonds due 2017 to 50 basis points from 25 bps, according to a notice from trustee Norsk Tillitsmann.

As previously reported, the company wants to temporarily ease the covenant terms. Bondholders will vote on the waiver at a meeting on Jan. 15.

If the waiver is approved, the maximum leverage ratio will be increased to 12.5 times from 6.5 times for the four quarters ending on Dec. 31, 2012, March 31, 2013, June 30, 2013 and Sept. 30, 2013.

The company notified bondholders of its request for a waiver in a summons dated Dec. 27. Norsk Tillitsmann said that after the summons was sent, the company, in cooperation with bondholders and advisers, agreed to amend the proposal to add the following: The company will seek to keep the leverage ratio below 6.5 times for the four quarters ending on Dec. 31, 2012, March 31, 2013, June 30, 2013 and Sept. 30, 2013.

The issuer would have been in compliance with the maximum leverage ratio as set out in the bond agreement if the issuer had not incurred the losses in connection with the Boskalis case and made the provisions in connection with the ESA case, according to a Jan. 9 notice.

The company, therefore, agreed to amend the waiver request so that it will try to comply with the 6.5 times maximum leverage ratio as long as its consolidated EBITDA is adjusted for the losses and provisions of those cases.

Hurtigruten is a cruise ship company based in Narvik, Norway.

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