Renewable Energy begins offers to repurchase, exchange convertibles

By Susanna Moon

Chicago, Aug. 12 - Renewable Energy Co. ASA said it began an offer to repurchase and exchange up to €112 million of its subordinated unsecured convertible bonds 2009/2014.

The repurchase and exchange is for a principal amount of up to €112 million, including accrued interest since the July 4 payment date, according to a company press release.

The repurchase and exchange will be in connection with the issue of a new convertible bond loan maturing in 2018.

The company said it has mandated Arctic Securities ASA to explore the potential issue of up to $110 million principal amount of convertibles due Sept. 13, 2018.

The minimum tender amount is €250,000, or five convertible bond units of €50,000 of par each.

The repurchase and exchange offer will be settled through a combined cash and exchange settlement as follows:

• About 30% of the offer will be settled in cash of up to about NOK 263 million; and

• About 70% of the offer will be subscription in the new convertible bond loan.

The offer will run through 10:30 a.m. ET on Aug. 15, with settlement set for Sept. 13.

The company will accept notes on a prorated basis if the offer is oversubscribed.

The offer requires approval by shareholders at a meeting slated for Sept. 6.

A voting undertaking has been signed by the company's largest shareholder, UMOE AS, representing 15.5% of the shares, the release noted, and companies controlled by the board members Oystein Stray Spetalen, for 2.9% stake, and Jan Christian Opsahl, for 0.6% stake. In addition, other shareholders representing 11.9% of the company have signed the voting undertaking.

More repurchase offers

Separately, the company plans to launch voluntary offers for partial repurchase of its bond loans REC01 maturing in 2014, REC02 maturing in 2016 and REC03 maturing in 2018.

The company plans to redeem up to the following amounts:

• About NOK 390 million, or about 60%, of the REC01 bonds with a cash payment of about NOK 402 million, or at 103% of par;

• About NOK 285 million, or about 40%, of the REC02 bonds at par; and

• About NOK 365 million, or about 40%, of the REC03 bonds at par.

The completion of the company's plans to separate its silicon and solar divisions is conditioned on shareholder and bondholder approvals.

The company said it expects to distribute summons to the bondholder meetings on Aug. 14.

Renewable Energy is a provider of solar electricity services based in Sandvika, Norway.

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