Northern Logistic holders vote to amend bond loan agreement

By Susanna Moon

Chicago, Dec. 23 - Northern Logistic Property ASA bondholders adopted the proposed amendments to its bond loan agreement at a meeting Tuesday.

Maturity for a part of the bond loan was postponed to the second quarter of 2011 from full repayment in the third quarter of 2009. The company will repay half of the bond loan Dec. 31 and repay the remaining loan using operational cash flow.

Limitations to dividends will be waived as soon as the bonds are repaid.

Bondholders adopted the following amendments to the bond loan agreement:

• Provision on building of a debt-servicing account as resolved in the bondholders meeting on Oct. 2 is set aside and replaced so that half of the outstanding bonds are repaid on Dec. 31 and the remaining are paid with eight payments until the final payment on April 12, 2011;

• Northern Logistic may call the bonds at par;

• Raise interest to Nibor plus 425 basis points from Nibor plus 200 bps;

• Release NOK 15 million on the debt servicing account to the company in connection with the first installment on Dec. 31. Security on the debt servicing account is discontinued at the same time; and

• Amend the existing dividend restriction so that the company undertakes during the term of the bonds to not pay dividends, reduce the share premium fund, buy back shares or similar or in other ways make distributions to its shareholders without first having made full redemption of the bonds.

"The adopted amendments give the company greater financial flexibility and secures financing for ongoing and started projects," the company said in a press release.

Northern Logistic Property is an Oslo-based real estate company.

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