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BRIEF-Norske Skogindustrier with final recapitalization proposal​
October 11, 2017 / 12:06 PM / in 12 days

BRIEF-Norske Skogindustrier with final recapitalization proposal​

Oct 11 (Reuters) - NORSKE SKOGINDUSTRIER ASA:

* ‍BOARDS’ FINAL RECAPITALIZATION PROPOSAL​

* ‍KEY TERM IS ISSUANCE OF A NEW SENIOR SECURED EUR 250 MILLION BOND LOAN CARRYING 8.5 % INTEREST WITH A 2022 MATURITY TO OWNERS OF EUR 290 MILLION BOND LOAN AND EUR 100 MILLION NSF-FACILITY.​

* ‍NEW BOND LOAN WILL HAVE SAME COLLATERAL SECURITY AS TODAY‘S SECURED DEBT​

* ‍WILL PROPOSE AN EQUITY OFFERING BY NORSKE SKOGINDUSTRIER ASA OF UP TO APPROXIMATELY NOK 500 MILLION​

* ‍KEY TERMS: CONVERSION INTO EQUITY OF ALL OUTSTANDING UNSECURED BOND DEBT AMOUNTING TO APPROXIMATELY EUR 500 MILLION INCLUDING ACCRUED INTEREST​

* ‍SUBSCRIPTION PRICE WILL BE SET AT A VALUATION OF 6X REVISED 2017 GOE GUIDANCE OF EUR 75 MILLION.​

* ‍IF PROPOSAL IS SUCCESSFUL, TRANSACTION WILL REDUCE GROUP‘S GROSS DEBT FROM APPROXIMATELY NOK 9 BILLION TO APPROXIMATELY NOK 3 BILLION​

* SAYS ‍IF PROPOSAL IS NOT SUCCESSFUL, IT IS LIKELY THAT BOARDS OF DIRECTORS WILL FILE FOR VOLUNTARY OR COMPULSORY DEBT NEGOTIATION PROCEEDINGS OR BANKRUPTCY IN NORWEGIAN COURTS.​ Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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