Key terms bond loan:
NOK 900,000,000 (with a maximum issue amount of NOK 1,500,000,000 under potential subsequent tap issue) senior secured bond. Guarantees and security is shared with certain hedging providers and one or more revolving credit facilities and, under the terms of an intercreditor agreement, the bond issue ranks behind the relevant hedging providers and the revolving credit facilities in the payment waterfall.
Call option: Make Whole 1.5-years, thereafter callable @ 100% of par + ½ / ⅓ / ⅙ of the Margin after 18/24/30 months. Callable @ 100% after 33 months until the Maturity Date
Put option: Upon a change of control, failure to list the bond or a de-listing of the Issuer's share from Oslo Børs, exercisable at 101% of the nominal amount of the redeemed bond.
General undertakings (covenants): Customary general undertakings applicable to the Issuer and all its direct and indirect subsidiaries, including maintaining authorisations, compliance with laws, continuation of business, pari passu ranking, limitations on investments, limitations on distributions, certain financial support restrictions, restrictions on limiting subsidiaries' right to make distributions.
Financial covenants: The Issuer must ensure compliance with the following financial covenants (maintenance covenants), measured on the group as a whole:
Interest cover ratio (ICR) of not less than 1.5x
Net-loan-to-value ratio below (NLTV) 75%
Liquidity not less than an amount equal to net interest costs for the next 3 months
In addition (incurrence covenants):
any distribution from the Issuer is subject to an NLTV of not less than 65% and a liquidity that is 1.5x higher than the liquidity requirement above; and
the incurrence of certain otherwise permissible new financial indebtedness is subject to a loan-to-value ratio of 60%
For further details, please refer to KMC Properties’ latest reports and presentations.