Norwegian Property ASA - New bond issue completed
Norwegian Property ASA has closed the earlier announced bond issue with an amount of NOK 1.511 million. This issue is part of the total refinancing of the company's bank facility. Settlement date of the bond is on the 22nd March 2007.
The issue consists of 2 tranches. Tranche 1 totalling NOK 1.209 million is secured by first priority pledge in a portfolio consisting of four properties located in Oslo and in Stavanger. Tranche 1 has a tenor of 5 years and is divided into two subtranches, one with a coupon of 3 months NIBOR + 0.45%, and one with a fixed coupon of 5.50%. Tranche 2 totals NOK 302 million and is secured by a second priority pledge in the same portfolio. It has a tenor of 3 years and carries a coupon of 3 month NIBOR + 0.70%. The average margin paid by Norwegian Property on the bonds is 3 month NIBOR + 0.50%.
DnB NOR Markets, Fokus Markets, Nordea Markets and SEB Merchant Banking has acted as joint lead arrangers. An application will be made for a listing of the bond on the Oslo Stock Exchange.
Average margin for the Group's total borrowing is approximately 60 basis points after the issuance of the bonds.
For further information, please contact:
For Norwegian Property ASA:
CFO Svein Hov Skjelle, mobile + 47 930 55 566