GlobalConnect gets OK to call DKK 700 million 5.7% bonds for merger

By Susanna Moon

Chicago, Feb. 13 – GlobalConnect A/S said it secured the needed votes to call its DKK 700 million of outstanding 5.7% senior secured bonds due 2020.

There were enough bondholders at the meeting to form a quorum, and the proposed measure obtained 98.72% of the votes cast, according to a company announcement.

The holder meeting was held at 3 a.m. ET on Feb. 13 in Oslo.

As announced Jan. 30, GlobalConnect expects to refinance its debt in connection with the acquisition of the company by Infrastructure investment strategy through Skynet Invest ApS.

The issuer was asking for bondholder approval to allow an early redemption of the bonds “at a first possible redemption price” of 107.3% of par plus accrued interest, assuming that redemption occurs before April 1.

If the redemption occurs on April 1 or later, the early redemption price will step down according to a specific structure.

If the proposed amendment is not approved and the acquisition goes through, the issuer said it plans to redeem the bonds at 104% of par plus accrued interest.

Concurrently, the issuer is also soliciting consents through Nordea Danmark under a separate process, the release noted.

Bondholders who sent voting instructions before 11 a.m. ET on Feb. 7 will receive an early consent fee of 0.2%.

The early consent fee will be paid if the proposal is voted in at the bondholders’ meeting, the issuer implements the early redemption provision, and the acquisition closes.

Bondholders who voted without sending voting instructions will be ineligible to receive the early consent fee, but all holders will receive the early redemption price if the early redemption is completed, the release noted.

The fine deadline for submitting voting instructions was 10 a.m. ET on Feb. 10.

The solicitation agent is Nordea Danmark (+45 6161 2996, bibi.larsen@nordea.com / nordealiabilitymanagement@nordea.com). The consent solicitation paying agent is Nordea Bank AB (IssuerSeCustodian@nordea.com).

As announced March 12, 2015 the company received holder approval to amend the bond issue 2013/2018 and to extend the notes until May 15, 2020.

The amendments also allowed the company to insert a call option to redeem the bonds beginning in November 2017 at 104 plus accrued interest, in May 2018 at 103 plus accrued interest, in May 2019 at 102 plus accrued interest and in November 2019 at 100.5 plus accrued interest.

Based in Taastrup, Denmark, the issuer provides secure data networking, housing and cloud services.

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