Early redemption for Cermaq bondholders

By

SeafoodSource staff

Published on
July 22, 2013

Cermaq bondholders on Monday agreed to the terms of an early redemption offer on an outstanding bond loan, following the sale of EWOS to private equity funds Alto and Bain Capital.

The early redemption price is 1 percent above the change of control put option price stated in the bond agreement.

On 5 July, Cermaq said the sales of EWOS “constitutes a significant change to the business of Cermaq,” which is why the early redemption was offered.

“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.”

Cermaq on Thursday announced it entered into a definitive share agreement with Alto and Bain Capital for the NOK 6.5 billion (USD 1.08 billion, EUR 826.9 million) sales of its fish feed division.

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