Index Invest seeks to extend SEK 375 million floaters by six months

By Wendy Van Sickle

Columbus, Ohio, April 6 – Index Invest International AB, formerly Index Residence AB, is seeking to amend its SEK 375 million of senior secured callable floating-rate bonds to extend the maturity date to allow time for expected property sales – the proceeds of which are slated to be used to repay the bonds – to close, according to a notice from agent Nordic Trustee & Agency.

The bonds are presently due to mature on May 22, and the issuer wishes to extend the maturity by six months to Nov. 22, 2018.

Index Invest has several ongoing property development projects in Sweden and the U.S. state of Florida, with three of the Florida projects in the sales process. The sale of its High Ridge Landing project is expected to close sometime this month, while the sales of its Monterey Point and Tarpon Harbour projects are expected to close in June or July.

The issuer said it believes the successful completion of these sales, although not guaranteed, will provide sufficient proceeds to repay the bonds.

During the extension period, the bonds will be callable at 101 from the original maturity date until July 22, then stepping up to 102 until Sept. 22, then to 103 until the extended maturity date.

The issuer would be required to use all net proceeds of at least SEK 50 million from any of the sales of the Florida projects to partially repay the bonds on a pro rata basis at the scheduled premium to par.

Index Investment is offering an early bird consent fee of 0.25% of the represented principal amount of bonds to bondholders who consent to the extension by the early deadline of 12 p.m. ET on April 18.

The issuer’s request has been pre-accepted by holders of key bonds, with holder and beneficial owners representing about 53% of the outstanding bonds having given irrevocable undertakings to vote in favor of the extension, according to the notice.

The final deadline to submit votes is 12 p.m. ET on April 25.

Holders representing at least 20% of the outstanding bonds must participate in the written voting procedure in order to form a quorum. In order for the request to be adopted, holders of at least 75% of the participating bonds must vote in favor of the request.

Agent Nordic Trustee & Agency may be reached at voting.sweden@nordictrustee.com or +46-70-598-3627.

The independent investment group invests in, owns, develops, manages and rents properties and is based in Stockholm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.