Sektor seeks to call 5% bonds at 107.25, floaters at 103.05 for merger

By Susanna Moon

Chicago, May 26 – Sektor Portefølje III AS, a fully owned subsidiary of Sektor Gruppen AS, has set bondholder meetings for its 5% senior secured bond issue 2012/2017 and its senior secured floating-rate bond issue 2012/2016.

As the notes have no call provision, the company is seeking to amend the notes to push up the maturity to July 17, 2015 with the payout for the 5% notes at 107.25 and for the floaters at 103.05, according to a notice by Nordic Trustee ASA.

The company also will pay accrued interest.

Meetings to approve the changes will be held on June 11 in Oslo.

The proposed redemptions follow Sektor’s agreement to be acquired by Citycon Oyj, a transaction which will be financed through an equity issue and bridge loan. The deal is expected to close July 14.

Sektor is seeking to simplify and align its debt financing structure with Citycon’s funding structure and strategy, which is to maintain and raise any new debt on an unsecured basis at the parent level or by its dedicated treasury company.

The proposed redemption reflects a price premium compared with trading levels of bonds in the secondary market, the release noted.

The price implies a spread of 55 basis points for the 5% notes and a discount margin of 45 bps for the floaters.

Sektor develops, manages and operates shopping centers in Norway. The company is based in Oslo, Norway.

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