Indicative Term Sheet
Transcription
Indicative Term Sheet
Indicative Term Sheet ISIN: NO [●] FRN Color Group AS Senior Unsecured Guaranteed Open Bond Issue 2015/2020 (the “Bonds” or the “Bond Issue”) Settlement date: Expected to be 2 June 2015 Issuer: Color Group AS (org. number 958 815 018). Guarantor: Color Line AS (org. number 970 903 968). Group: Means the Issuer and its Subsidiaries, and a “Group Company” means the Issuer or any of its Subsidiaries. Currency: NOK. Borrowing Limit: NOK 700 million. First Tranche: Minimum NOK 500 million. Coupon rate: 3 months NIBOR + 4.85% p.a., quarterly interest payments. Settlement Date: Expected to be 2 June 2015. Notice is expected to be given to subscribers minimum two banking days prior to Settlement Date. Maturity Date: 2 June 2020 (5 years after Settlement Date). First interest payment day: 2 June 2015 (3 months after Settlement Date). Last interest payment day: Maturity Date. Interest Payments: Interest will start to accrue on Settlement Date and shall be payable quarterly in arrears on the interest payment day in March, June, September and December each year. Daycount fraction for the coupon is “act/360”, business day convention is “modified following” and business day is “Oslo”. Issue Price: 100.00 (par). Amortization: The Bonds shall be repaid in full at the Maturity Date at 100% of par value (plus accrued interest on redeemed Bonds). Nominal value: The Bonds will have a nominal value of NOK 1,000,000 each. Minimum subscription and allotment amount shall be NOK 1,000,000. Status of the Bonds: The Bonds shall be senior debt, and rank at least pari passu with all other senior obligations of the Issuer other than obligations which are mandatory preferred by law. The Bonds shall rank ahead of subordinated capital. The Bonds will be secured by the Guarantee. 1 Guarantee: An unconditional and irrevocable guarantee (Norwegian: Selvskyldnerkausjon) from the Guarantor securing the Issuer’s obligations under the Bond Agreement and any other Finance Documents, including interest, cost and expenses. Purpose of the Bonds: Refinancing of existing debt (including buy-back of COLG08 PRO), and general corporate purposes. General covenants applicable to the Issuer: During the term of the Bonds, the Issuer shall (unless the Bond Trustee or the Bondholders’ meeting (as the case may be) in writing has agreed to otherwise) comply with the following general covenants: a) Mergers: The Issuer shall not 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 if such transaction would have a Material Adverse Effect. b) De-mergers: The Issuer shall not carry out any de-merger or other corporate reorganization involving splitting the Issuer or any other Group Company into two or more separate companies or entities, if such transaction would have a Material Adverse Effect. c) Continuation of business: The Issuer shall not cease to carry on its business. The Issuer shall procure that no material change is made to the general nature or scope of the business of the Group from that carried on at the date of the Bond Agreement, or as contemplated by the Bond Agreement. d) Disposal of business: The Issuer shall not sell or otherwise dispose of all or a substantial part of its 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. e) Arm’s length transaction: The Issuer shall not, and the Issuer shall ensure that no other Group Company shall enter into any transaction with any person except on arm’s length and for fair market value. f) Corporate status: The Issuer shall not change its type of organization (other than to a public limited company) or jurisdiction of incorporation. g) 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. h) Reporting: The Issuer shall of its own accord make management and financial reports available to the Bond Trustee (or via the distribution system at Oslo Stock Exchange as long as the Issuer’s bonds are listed) and on its web pages for public distribution not later than 120 days after the end of the financial year (results as per 31 December) and not later than 60 days after the end of the relevant half-year period (results as per 30 June). Special covenants applicable to the Issuer: a) Negative Pledge The Issuer shall ensure that neither the Issuer nor any member of the Group creates or permits to subsist any mortgage, charge, pledge, lien or any other form of encumbrance upon its or any of its subsidiaries’ existing or future assets or grant any 2 guarantees or indemnity for an amount exceeding 60% of the Group’s consolidated Total Assets. “Total Assets” means, on any date, the aggregate book value (on a consolidated basis) of those assets which according to IFRS should be included as assets in the balance sheet, as set out in the then most recent financial statements (or, as applicable, the most recent semi-annual accounts) of the Issuer. b) Minimum Book Equity The Issuer shall, on a consolidated basis for the Group, maintain a Book Equity of minimum NOK 1,000 million. The Issuer undertakes to be in compliance with this financial covenant at all times, such compliance to be measured on each semiannual date. “Book Equity” means the aggregate book value (on a consolidated basis) of the Group’s total equity treated as equity in accordance with IFRS, as set out in the then most recent financial statements (or, as applicable, the most recent semi-annual accounts) of the Issuer. Material Adverse Effect: Means an event or circumstance which has a material adverse effect on: (a) the business, financial condition or operations of the Issuer and/or the Group as a whole, (b) the Issuer’s ability to perform and comply with its obligations under the Bond Agreement; or (c) the validity or enforceability of the Bond Agreement or any security documents (including the Guarantee) (if applicable). Subsidiary: Means a company over which another company has Decisive Influence. Decisive Influence: Means a person having, as a result of an agreement or through the ownership of shares or interests in another person: (a) a majority of the voting rights in that other person; or (b) a right to elect or remove a majority of the members of the board of directors of that other person. When determining the relevant person’s number of voting rights in the other person or the right to elect and remove members of the board of directors, rights held by the parent company of the relevant person and the parent company’s Subsidiaries shall be included. Event of Default: The Bond Agreement shall include standard event of default provisions, including cross default on any financial indebtedness of any Group Company subject to a carveout of the highest of NOK 10 million or 1% of the Issuer’s book equity (latest audited accounts). Approvals: The Bonds have been issued in accordance with the Issuer’s Board approval dated 21 May 2015. Issuer’s ownership of bonds: 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 and discharged against the remaining Bonds. Joint Lead Managers: Arctic Securities AS, Haakon VII’s gate 5, NO-0161 Oslo, Norway; Danske Bank Markets, Norwegian Branch, Bryggetorget 4, NO-0107 Oslo, Norway; DNB Bank ASA, DNB Markets, Dronning Eufemias gate 30, NO-0191 Oslo, Norway. Bond Trustee: Nordic Trustee ASA, Postboks 1470 Vika, NO-0116 Oslo, Norway Registration: The Norwegian Central Securities Depository (“VPS”). Principal and interest accrued will be credited the bondholders through VPS. Taxation: The Issuer shall pay any stamp duty and other public fees in connection with the Bonds, but not in respect of trading in the secondary market (except to the extent required by applicable laws), and shall deduct at source any applicable withholding tax payable pursuant to law. Tax deduction and withholding tax shall be subject to 3 standard gross-up and call provisions. Bond Agreement: The bond agreement governing the Bond Issue (the "Bond Agreement") will be entered into by the Issuer and the Bond Trustee (acting as the Bondholders’ representative) and shall, save for the amendments herein, be based on the provisions in COLG11. The Bond Agreement will regulate the bondholders’ rights and obligations with respect to the Bonds. If any discrepancy should occur between this Term Sheet and the Bond Agreement, then the Bond Agreement shall prevail. The Bond Agreement will specify that all Bond transfers shall be subject to the terms thereof, and the Bond Trustee and all Bond transferees shall, when acquiring the Bonds, be deemed to have accepted the terms of the Bond Agreement, which specifies that all such transferees shall automatically become parties to the Bond Agreement upon completed transfer having been registered in the VPS, without any further action required to be taken or formalities to be complied with. The Bond Agreement shall specify that it shall be made available to the general public for inspection purposes and may, until redemption in full of the Bonds, be obtained on request by the Bond Trustee or the Issuer, and such availability shall be recorded in the VPS particulars relating to the Bonds. COLG11: Means the Bond Issue with ticker COLG11 and with ISIN NO 0010699168. Application for Bonds and acceptance of Bond Agreement: The application for and subscription of Bonds will occur on the terms of the application form by the Joint Lead Managers (the "Application Form"), and subscribers will execute and deliver such Application Form by a signed document, taped telephone conversation, e-mail or otherwise. By applying and subscribing for Bonds, the applicant will be deemed to have accepted all terms set out in the Application Form, including the representations and acknowledgments set out therein. Please note in this respect that the Bond Issue is based only upon the Documentation as supplemented by any publicly available information, and in particular that no prospectus, offering memorandum or similar document has been prepared. The signing of the Application Form will specifically authorize the Bond Trustee to execute and deliver the Bond Agreement on behalf of the prospective bondholders. On this basis, the Issuer and the Bond Trustee will execute and deliver the Bond Agreement and the latter’s execution and delivery is on behalf of all of the subscribers, such that they thereby will become parties to the Bond Agreement. Minor adjustments to the terms and structure described in this Term Sheet may occur in the Bond Agreement. Documentation: This Term Sheet, the Application Form and the investor presentation. Finance Documents: Means (i) the Bond Agreement, (ii) the fee letter between the Bond Trustee and the Issuer, (iii) the Guarantee, and (iv) any other document (whether creating Security or not) which is executed at any time by the Issuer or any other person in relation to any amount payable und the Bond Agreement. Listing of Bonds: An application will be made for the Bonds to be listed on Oslo Børs. Market making: No market-maker agreement has been made for this Bond Issue. Eligible purchasers: The Bonds are not being offered to and may not be purchased by investors located in the United States except for “Qualified Institutional Buyers” (QIBs) within the meaning of Rule 144A under the U.S. Securities Act of 1933, as amended (“Securities Act”). In addition to the application form that each investor will be required to execute, each U.S. investor that wishes to purchase Bonds will be required to execute and deliver to the Issuer a certification in a form to be provided by the Issuer stating, among other things, that the investor is a QIB. The Bonds may not be purchased by, or 4 for the benefit of, persons resident in Canada. Investors located in the US will acquire the Bonds from the U.S.-registered brokerdealers Danske Markets Inc., DNB Markets Inc. or Beech Hill Securities Inc. with which Arctic Securities AS has entered into a chaperoning arrangement under the Securities Exchange Act section 15A-6 Transfer restrictions: Bondholders located in the United States will not be permitted to transfer the Bonds except (a) subject to an effective registration statement under the Securities Act, (b) to a person that the Bondholder reasonably believes is a QIB within the meaning of Rule 144A that is purchasing for its own account, or the account of another QIB, to whom notice is given that the resale, pledge or other transfer may be made in reliance on Rule 144A, (c) outside the United States in accordance with Regulation S under the Securities Act or (d) pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available). The Bonds may not, subject to applicable Canadian laws, be traded in Canada for a period of four months and a day from the date the Bonds were originally issued. Subject to: Finalized Bond documentation and approval of Bond documentation by the Issuer and the Bond Trustee. Oslo, 21 May 2015 Color Group AS as Issuer & Color Line AS as Guarantor As Joint Lead Managers 5