Klaveness Ship Holding AS Senior Unsecured Callable Open Bond Issue 2014/2020

Transcription

1 Term sheet written in connection with application of listing on Nordic ABM Date: 2 April 2014 Final ISIN: NO Klaveness Ship Holding AS Senior Unsecured Callable Open Bond Issue 2014/2020 Terms: Documentation: The Loan Agreement 1) is described more closely in Standard Terms Before investing in the bond, the investor is encouraged to become familiar with relevant documents such as this term sheet, the Loan Agreement and the Issuer s financial accounts and articles of association and if relevant, listing document. The documents are available from the Issuer and in Relevant Places. In the case of any discrepancies between the Loan Agreement and this term sheet, the Loan Agreement will apply. Relevant Places: Issuer/Borrower: Klaveness Ship Holding AS Borrowing Limit Tap Issue: NOK 600,000,000 First Tranche / Loan Amount : 2) NOK 400,000,000 Disbursement Date: 3) 20 March 2014 Maturity Date: 4) 20 March 2020 NIBOR: 5) 3 months NIBOR Margin: % p.a. Coupon Rate: 6) NIBOR + Margin Day Count Fraction Coupon: Act/360 7) 9) Date of interest adjustment: Interest Payment Date Business Day Convention: 8) Modified Following Interest Payment Date: 9) 20 March, 20 June, 20 September and 20 December each year. Interest accrual date (from and including): Disbursement date Final coupon date (to): Maturity Date # days first term: 92 days Status of the Loan 10) The Bonds shall be senior debt of the Issuer. The bonds are unsecured. Issue Price: 11) (par) Denomination: NOK 1,000,000 Bondholder s put option: 12) Redemption Date(s): See Special (distinct) conditions Change of control event Price: 101 % Issuer s call option: 13) Redemption Date(s): From May 2018 to May 2019 From May 2019 to May 2020 Price: % % The Issuer may redeem the Bond Issue (all or nothing) as follows (Call Option): a) with settlement date at any time from and included the Interest Payment Date in March 2018 to, but not included, the Interest Payment Date in March 2019 at % of par plus accrued but FRN Bullet Bond Page 1 of 7

2 unpaid interests on redeemed amount. b) with settlement date at any time from and included the Interest Payment Date in March 2019 to, but not included Maturity Date at % of par plus accrued interests on redeemed amount Issuer s org number: Number / Codes: Sector Code : 2100 Geographic code: 0301 Industry (trade) Code: Usage of funds: The net proceeds of the Bonds shall be applied towards general corporate purposes. Approvals / Permissions: The Bond Issue has been issued in accordance with the Issuer s Board approval dated 5 March Oslo Børs will inspect relevant documents prior to listing. Trustee / Bondholders' Representative: Arranger(s): Paying Agent: Securities Depository: Market making: Special (distinct) conditions: Norsk Tillitsmann ASA, Postboks 1470 Vika, 0116 Oslo, Norway. Danske Bank Markets, P.O. Box 1170 Sentrum, N-0107 Oslo, Norway; DNB Bank ASA, DNB Markets, Dronning Eufemias gate 30, N-0191 Oslo, Norway; Pareto Securities AS, Dronning Mauds gt. 3, pb 1411 Vika, 0115 Oslo, Norway DNB Bank ASA, Registrars Department The Norwegian Central Securities Depository (VPS). Principal and interest accrued will be credited the Bondholders through VPS. No market-maker agreement has been made for this Issue. Change of Control Upon a Change of Control Event occurring, each Bondholder shall have a right to require that the Issuer redeems its Bonds (Put Option) at a price of 101% of par value (plus accrued interest). The Put Option must be exercised within 60 calendar days after the Issuer has given notification to the Bond Trustee of a Change of Control Event. Such notification shall be given as soon as possible after a Change of Control Event has taken place. The Put Option may be exercised by each Bondholder by giving written notice of the request to its Account Manager. The Account Manager shall notify the Paying Agent of the redemption request. The settlement date of the Put Option shall be the third Business Day after the end of the 60 calendar days exercise period of the Put Option. On the settlement date of the Put Option, the Issuer shall pay to each of the Bondholders holding Bonds to be redeemed, the principal amount of each such Bond (including any premium pursuant to clause in the Loan Agreement) and any unpaid interest accrued up to (but not including) the settlement date. Change of Control Event Change of Control Event means: a) If Mr Trond Harald Klaveness and/or any of his heirs, successors or assigns, ceases to own directly or indirectly 50% or more of the outstanding shares and/or voting capital of the Issuer; or b) If any person other than those referred to in paragraph (a) above becomes the owner directly or indirectly of 50% or more of the outstanding shares and/or voting capital of the Issuer; or a) If the Ultimate Parent ceases to own (directly or indirectly) minimum 50.1% of the outstanding shares and/or voting capital of the Issuer. Special issues applicable to the Issuer During the term of the Bonds, the Issuer shall (unless the Trustee or the Bondholders meeting (as the case may be) in writing has agreed to otherwise) comply with inter alia the following general covenants and undertakings at any FRN Bullet Bond Page 2 of 7

3 time: General covenants (a) Pari passu ranking The Issuer shall ensure that its obligations under the Bond Agreement and any other Finance Document shall at all time rank at least pari passu as set out in Bond Agreement clause 8.1. (b) Mergers The Issuer shall not, and shall ensure that no other Group Company shall, carry out any merger or other business combination or corporate reorganization involving a consolidation of the assets and obligations of the Issuer or any other Group Company with any other companies or entities not being a member of the Group if such transaction would have a Material Adverse Effect. (c) De-mergers The Issuer shall not, and shall ensure that no other Group Company shall, carry out any de-merger or other corporate reorganization involving a split of the Issuer or any other Group Company into two or more separate companies or entities, if such transaction would have a Material Adverse Effect. (d) Continuation of business The Issuer shall not cease to carry on its business. The Issuer shall ensure that no Material Subsidiary shall cease to carry on its business if such cessation would have a Material Adverse Effect. Further, the Issuer shall ensure that no other Group Company shall cease to carry on its business, if such transaction would have a Material Adverse Effect. The Issuer procure that no substantial change is made to the general nature of the business of the Group from that carried on at the date of the Bond Agreement, and/or as set out in the Bond Agreement. (e) Disposal of business The Issuer shall not, and shall procure that no other Group Company shall, sell or otherwise dispose of all or a substantial part of the Group s assets or operations, unless: (i) the transaction is carried out at fair market value, on terms and conditions customary for such transactions; and (ii) such transaction would not have a Material Adverse Effect. (f) Arm s length transactions The Issuer shall not engage in, or permit any member of the Group to engage in, directly or indirectly, any transaction with any party (without limitation, the purchase, sale or exchange of assets or the rendering of any service), except in the ordinary course of business and pursuant to the reasonable requirement of the Group's business and upon fair and reasonable terms that are no less favourable to the Issuer or such member of the Group, as the case may be, than those which might be obtained in an arm's length transaction at the time. (g) Corporate status The Issuer shall not change its type of organization or jurisdiction of incorporation. (h) Compliance with laws The Issuer shall, and shall ensure that all other Group Companies shall, carry on its business in accordance with acknowledged, careful and sound practices in all material aspects and comply in all material respects with all laws and regulations it or they may be subject to from time to time. Special covenants (a) Ownership of Material Subsidiaries The Issuer shall not sell, transfer, assign or otherwise dilute or dispose of any shares or any other ownership interest in any Material Subsidiary to any person not being a member of the Group, unless the transaction is carried out at fair market value, on terms and conditions customary for such transaction and further provided that such transaction does not have a Material Adverse Effect. (b) Dividend restrictions 1) The Issuer shall not declare or make any dividend payment or distribution, whether in cash or in kind, repurchase of shares or make other similar transactions (included, but not limited to total return swaps related to shares in the Issuer), or other distributions or transactions implying a transfer of value to its shareholders ( Dividend Distributions ) exceeding 50.00% of Issuer s consolidated net profit after taxes based on the audited annual accounts for the FRN Bullet Bond Page 3 of 7

4 previous financial year. Any un-utilized portion of the permitted dividend pursuant to the above may not be carried forward to any subsequent financial year; and 2) The Issuer may irrespective of 1) above, declare or make any Dividend Distributions (including distributions exceeding 50.00% of Issuer s consolidated net profit after taxes based on the audited annual accounts for the previous financial year) provided that the Equity Ratio remains minimum 40.00% before and after such distribution has taken place. 3) The Issuer may however not, regardless of 1) and 2), above declare Dividend Distributions if it after disbursement will have less than USD 10 million in Cash and Cash Equivalent on a consolidated basis. (c) Subsidiaries distributions The Issuer shall not permit any of its Subsidiary to create or permit to exist any contractual obligations restricting the right of any of its Subsidiary to (i) pay dividends or make other distributions to its shareholders or (ii) pay any Financial Indebtedness to the Issuer or make any loans to the Issuer, except for (a) Subsidiaries owned jointly with a third-party as long as no Group Company is guaranteeing for such Subsidiary s debt, i.e. its debt financing is made on a nonrecourse basis and (b) dividend restrictions coming into effect upon a default event in pledge agreements with bank lenders. (d) Subordination of Shareholder Loans The Issuer shall ensure that any loan from the Ultimate Parent or its Subsidiaries (other than Subsidiaries of the Issuer) to the Issuer (a Shareholder Loan ) shall in all respects be fully subordinated to the Bonds and that repayment of principal and payment of cash interest may only made to the extent that such repayment of interests and principal could have been made as dividend within and in accordance with the Dividend Restrictions set out under letter a) above. The distribution capacity shall be reduced USD for USD for any payment of interests and/or principal under any Shareholder Loan. (e) Financial assistance The Issuer shall ensure that no Group Company shall grant any loans, guarantees or other financial assistance (including, but not limited to granting security) ( Financial Support ) to or on behalf of any party, except for (i) Financial Support from one Group Company to another Group Company, (ii) Financial Support made or allowed to subsist in its ordinary course of business including guarantees provided on behalf of Issuer`s Subsidiaries for liabilities of such Subsidiary, (iii) customary Financial Support provided on behalf of Issuer`s Subsidiaries in connection with long-term financing of vessels of such Subsidiary and (iv) group contributions to affiliates 100 % directly or indirectly owned by the Ultimate Parent, as long as the Ultimate Parent owns 100 % of the Issuer, to the extent that the same contribution could have been made as dividend within and in accordance with the Dividend Restrictions set out under letter b) above. The distribution capacity shall be reduced USD for USD for the net effect of such contribution. (f) Insurance The Issuer shall, and the Issuer shall procure that each Subsidiary will, maintain with financially sound and reputable insurance companies, funds or underwriters adequate insurance or captive arrangements with respect to its properties and business against such liabilities, casualties and contingencies and of such types and in such amounts as are consistent with prudent business practice. Financial covenants a) Equity Ratio The Issuer shall ensure that the Group maintains an Equity Ratio of minimum 30 %. b) Gearing Ratio The Issuer shall ensure that the Group maintains a Gearing Ratio of maximum 5.00x at any time. The Financial Covenants will apply for the Issuer (on a consolidated basis) at all times and will be tested on a semi-annual basis on each Calculation Date and reported within each Reporting Date. FRN Bullet Bond Page 4 of 7

5 If the Issuer is in breach with any of the Financial Covenants, the Issuer shall have 21 calendar days to restore such covenant from the date it is reported. Definitions: See the Loan (Bond) Agreement clause 1.1 Purchase and transfer of Bonds: See the Loan (Bond) Agreement clause 5 Purchase and transfer of Bonds. Supplementary information about the status of the loan: 10) The Bonds shall constitute senior debt of the Issuer. The Bonds shall rank at least pari passu with all other obligations of the Issuer (save for such claims which are preferred by bankruptcy, insolvency, liquidation or other similar laws of general application) and shall rank ahead of subordinated debt. The Bonds are unsecured. Standard Terms: Loan Agreement: 1) If any discrepancy should occur between this Loan Description and the Loan Agreement, then the Loan Agreement will apply. The Loan Agreement will be entered into between the Issuer and the Trustee prior to Disbursement Date. The Loan Agreement regulates the Bondholder s rights and obligations in relations with the Issue. The Trustee enters into this agreement on behalf of the Bondholders and is granted authority to act on behalf of the Bondholders to the extent provided for in the Loan Agreement. When bonds are subscribed/purchased, the Bondholder has accepted the Loan Agreement and is bound by the terms of the Loan Agreement. If subscription is made prior to finalisation of the Loan Agreement, the subscriber is deemed to have granted authority to the Trustee to finalise the Loan Agreement. For tap issues, the Loan Agreement will apply for later issues made within the Borrowing Limit. The parties rights and obligations are also valid for subsequent issued bonds within the Borrowing Limit. Open / Close: 3)4) Disbursement Date: 3) Expansions Tap Issues: 2) Issue price Tap Issues: 11) Interest Determination Date: 7) Interest Determination: 6)7) Tap Issues will be opened on Disbursement Date and closed no later than five banking days before Maturity Date. Payment of the First Tranche / Loan Amount takes place on the Disbursement Date. In case of late payment, the applicable default interest rate according to lov 17. desember 1976 nr 100 om renter ved forsinket betaling m.m. will accrue. For Tap Issues the Issuer can increase the loan above the First Tranche/Loan Amount, before the initial Disbursement Date. For taps not falling on Interest Payment Dates, Accrued Interest will be calculated using standard market practice in the secondary bond market. The Issuer may apply for an increase of the Borrowing Limit. Any taps under the Tap Issue will be made at market prices, and will fall under the regulations set out in emisjonsforskriften av 20. desember Business Days prior to Date of Interest Payment Date The regulation of the Interest Rate is effective from each Interest Payment Date. The new interest rate is determined on Interest Determination Date based on NIBOR with additional margin. NIBOR definition: 5) NIBOR means the interest rate which (a) is published on Oslo Børs webpage (or through another system or on another website replacing the said system or website respectively) approximately (on days on which the Norwegian money market has shorter opening hours (New Year s Eve and the Wednesday before Maundy Thursday), the data published by the banks at 10 a.m. shall be used), or, if such publication does not exist, (b) at that time corresponds to (i) the average of the quoted lending rates of Norwegian commercial banks on the interbank market in Oslo or, if only one or no such quotes are provided, (ii) the assessment of the Bond Trustee of the interest rate, which in the Bond Trustee s determination is equal to what is offered by Norwegian commercial banks, for the applicable period in the Oslo interbank market. If any such rate is below zero, NIBOR will be deemed to be zero. FRN Bullet Bond Page 5 of 7

6 Yield: Interest Period: 9)7) Accrued interest: Standard Business Day Convention: 8) Condition Bondholder s put option: 12) Condition Issuer s call option: 13) Registration: Issuer s acquisition of bonds: Amortisation: 4) Redemption: Sale: Dependent on the market price. Yield for the first Interest Period will be notified 2 Banking Days prior to Disbursement Date. The interest is paid in arrears on the Interest Payment Date. The first interest period matures on the first Interest Payment Date after the Disbursement Date. The next period runs from this date until the next Interest Payment Date. The last period of interest ends on Maturity Date. Accrued Interest for trades in the secondary bond market are calculated on the basis of current recommendations of Norsk Finansanalytikeres Forening. Modified Following: If the Interest Payment Date is not a banking day, the Interest Payment Date shall be postponed to the next banking day. However, if this day falls in the following calendar month, the Interest Payment Date is moved to the first banking day preceding the original date. On Redemption Date the Bondholders have a right to redeem the bonds at the Corresponding Price. Claim of redemption must be received by the account operator investor in writing no later than 15 banking days prior to the Redemption Date in question, as mentioned under The Bondholders Put Option. On Redemption Date, the Issuer has a right to redeem the bonds, completely or partly by drawing lots at the Corresponding Price. If the Issuer makes use of this right to redemption, the Issuer shall notify the Trustee, Bondholders and Nordic ABM regarding this matter no later than 30 banking days prior to the Redemption Date in question. The notification shall also be forwarded to the Bondholders through the Securities Depository as soon as possible. The loan must prior to disbursement be registered in the Securities Depository. The bonds are being registered on each Bondholders account in the Securities Depository. The issuer has the right to acquire and own the bonds. Such bonds may at the Issuer s discretion be retained by the Issuer, sold or used for partial redemption. The bonds will run without instalments and be repaid in full on Maturity Date at par, provided the Issuer has not called the bonds. Matured interest and matured principal will be credited each Bondholder directly from the Securities Registry. Claims for interest and principal shall be limited in time pursuant the Norwegian Act relating to the Limitation Period Claims of May no 18, p.t. 3 years for interest rates and 10 years for principal. Tranche 1/ Loan Amount has been sold by the Arranger(s). Later taps can be made by authorized securities brokers. Legislation: Disputes arising from or in connection with the Loan Agreement, which are not resolved amicably, shall be resolved in accordance with Norwegian law and the Norwegian courts. Legal suits shall be served at the Trustee s competent legal venue. FRN Bullet Bond Page 6 of 7

7 Fees and expenses: The Issuer shall pay any stamp duty and other public fees in connection with the loan. Any public fees or taxes on sales of Bonds in the secondary market shall be paid by the Bondholders, unless otherwise decided by law or regulation. The Issuer is responsible for withholding any withholding tax imposed by Norwegian law. Oslo, 2 April 2014 Klaveness Ship Holding AS FRN Bullet Bond Page 7 of 7