Dannemora bond trustee gives terms of SEK 21 million bridge financing

By Caroline Salls

Pittsburgh, Dec. 19 - Dannemora Mineral AB bond trustee Norsk Tillitsmann ASA announced the details of the proposed bridge financing that the company's bondholders will consider at a Dec. 30 meeting.

In the meeting summons, the trustee said some of the bondholders agreed to underwrite SEK 21 million of super senior bonds that will be offered to all bondholders to allow continued discussions between the company and its stakeholders and potential investors.

Norsk Tillitsmann said the injection of funds via the super senior bonds will give Dannemora and its group enough cash to avoid a liquidity shortfall until at least the end of January, and possibly until the second or third week of February, depending on how talks with trade suppliers develop over the coming weeks.

The bonds will be issued as a short-term bridge loan on or before Jan. 14 and will mature on Feb. 19.

The bonds carry a 5% original issue discount, meaning an actual subscription price of SEK 19.95 million.

Interest will be 0%. Default interest would be 10%.

The redemption price will be 115% of par.

The subscription period began on Dec. 19 and will end on Jan. 3, with settlement scheduled to occur on Jan. 8.

Dannemora is an iron ore producer based in Danderyd, Sweden.

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