Sektor gets OK to call 5% bonds, floating-rate notes for merger

By Toni Weeks

San Luis Obispo, Calif., June 11 – Sektor Portefolje III AS, a fully owned subsidiary of Sektor Gruppen AS, received approval at bondholder meetings on June 11 to redeem its 5% senior secured bond issue 2012/2017 and its senior secured floating-rate bond issue 2012/2016, according to a notice by Nordic Trustee ASA.

As previously noted, the notes have no call provision, and the company wanted 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.

The company also will pay accrued interest.

At the meetings, there were sufficient bondholders present to form a quorum for each series of notes. Each resolution obtained 100% of the notes.

The redemptions are connected to 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 redemption reflects a price premium compared with trading levels of bonds in the secondary market, according to a previous notice.

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.

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