Cermaq offers bondholders early redemption
summary：Due to the potential sale of EWOS, Cermaq is offering its bondholders early redemption on its outstanding bond loan....
Due to the potential sale of EWOS, Cermaq is offering its bondholders early redemption on its outstanding bond loan.A potential sale of EWOS “constitutes a significant change to the business of Cermaq,” the company said in a statement.
A proposal has already been approved by a necessary majority, through pre-acceptances from bondholders representing more than two-thirds of the bonds.
The EWOS transaction and the sale of the entities and operations related to EWOS will also imply sale of material subsidies and be a significant change to the business of the Cermaq group. A sale thereof will therefore affect several provisions of the bond agreement, the company said. As a result Cermaq is offering bondholders the opportunity to redeem the bonds in a full at 102 percent of par value, plus accrued unpaid interests.
The early redemption price is 1 percent above the change of control put option price stated in the bond agreement.
Bondholders will meet 22 July to vote on the proposal.