Scandinavian Biogas seeks bond waiver to repay Korean unit facility

By Susanna Moon

Chicago, April 11 – Scandinavian Biogas Fuels International AB (publ) is asking for waivers under its SEK 230 million of outstanding senior secured bonds 2020 by way of written procedure through Nordic Trustee & Agency AB as agent.

The voting forms must be sent by 11 a.m. ET on May 2. The record date is April 16.

Specifically, the issuer is seeking permission to use proceeds from a SEK 30 million subsequent bond issue on June 15, 2017 to repay a debt facility of the issuer’s South Korean subsidiary, according to a notice.

In order to do this, bondholders must waive provisions of the notes so that SEK 12,077,663 can be disbursed from an escrow account.

The company also requested the release of part or all of the transaction security over the escrow account.

“The issuer has encountered difficulties with facilitating a commercially justifiable repayment of the aforementioned existing debt facility and as a result, SEK 12,077,663 from the subsequent bond issue has not been disbursed from the escrow account,” the notice said.

The waivers also allow the proceeds to be applied toward the following:

• Financing newbuild capital expenditures up to SEK 8.4 million;

• Payment of transaction costs in connection with the subsequent bond issue and the consent notice; and

• Financing general corporate purposes of the group.

The written procedure requires a two-thirds majority of consents of the total adjusted principal amount represented. Quorum is met with 50% response.

For questions, contact the agent at voting.sweden@nordictrustee.com or +46 8 783 79 00.

The bonds were issued in 2016.

Scandinavian Biogas Fuels AB produces biogas in Sweden and South Korea.

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