No. 3/2019
Copenhagen, 26 February 2019
During 2018, Lauritz.com has been examining different options in respect of refinancing Lauritz.com A/S` corporate bonds with ISIN: SE0005999521 issued in 2014 and due to be redeemed in June 2019 at the end of a 5 year term (the "Bonds").
As previously communicated, a proposal for restructuration of the bonds has been up for vote between the bondholders. We are happy to announce that the proposal has now been approved. Approximately SEK 195 million of the bonds have voted (approx. 61 per cent), meaning that the procedure was quorate (minimum 20 per cent should vote). Of these, around SEK 192 million have voted yes. This means that approx. 98.4 per cent voted in favour of the proposal and that the proposal has been accepted (2/3 of the votes should approve for it to pass). The new amended bond terms are thereby accepted and will now be implemented.
The adoption of the redefined terms for the bonds will secure the financial situation for the group of Lauritz.com in the coming years, allowing management to focus on growing and optimizing the business in a market with a considerate further potential.
The new approved terms can be summarized as follows:
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Write-down of the outstanding aggregate nominal amount by app. SEK 118,000,000 (DKK 85,000,000) from SEK 318,000,000 (DKK 230,000,000) to app. SEK 200,000,000 (DKK 145,000,000).
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Amendment of the interest rate from a floating rate of STIBOR (3 months) + 7.50 per cent. per annum to a blended rate where a nominal amount of approximately SEK 70,000,000 bears a fixed interest rate of 7.5 per cent. per annum and a nominal amount of SEK 130,000,000 bears a fixed interest rate of 4 per cent. per annum. Redemptions will firstly lead to a reduction in the nominal amount that bears the higher interest rate 7.5 per cent. per annum.
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The changed bond terms and conditions will reduce the interest for the first 12 months after the adoption of the proposal from approx. SEK
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23,900,000 (DKK 17,400,000) (calculated on the basis of the current interest rate) to approx. SEK 10,500,000 (DKK 7,700,000), an interest reduction amounting to SEK 13,400,000 (DKK 9,700,000). In the following years, the interest payments will be reduced further, partly due to the lower outstanding amount following redemptions and partly due to the resulting reductions in the blended interest rate.
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Extension of the final redemption date from 17 June 2019 to 17 December 2024, with scheduled yearly redemptions.
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The provisioning of additional security to secure the Bonds, primarily in form of a pledge in the vineyard Chateau Vignelaure owned by the majority shareholder in Lauritz.com Group A/S, Bengt Sundström. The new bond terms will enter into force when the additional securities have been perfected.
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An obligation of Lauritz.com A/S to pursue divestment of certain auction houses, including establishment of partnership agreements with royalty payments to Lauritz.com. Any cash obtained from such divestments shall be applied as an extraordinary redemption on the Bonds.
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Deletion of the obligation to fulfil the financial covenants, and a waiver of the existing financial covenants for the period until the new terms enters into force.