BlueNord ASA Successfully Places Hybrid Bond Issue
BlueNord ASA (OSE: BNOR) has achieved a significant milestone in its financial strategy with the successful placement of a new subordinated callable hybrid bond issue worth USD 300 million. This bond matures in 2085, marking a robust step forward for the company. The first call on the hybrid bond is at 100% of nominal value, and a structured coupon rate increases after 4.5 years.
The fixed interest rate stands at an attractive 12% per annum, paid semi-annually in arrears. According to Euan Shirlaw, Chief Executive Officer of BlueNord, this successful bond placement is a pivotal moment in the company’s capital evolution. It allows BlueNord to effectively refinance the convertible bond raised during their entry into DUC in 2019, all while maintaining financial flexibility and minimizing equity dilution associated with mandatory conversions.
Strategic Implications of the Bond Issuance
The bond issuance has been timed perfectly, as BlueNord stands poised to enhance production and cash flow with Tyra now fully operational. This funding approach not only secures financial flexibility but also positions the company to continue delivering value to its stakeholders.
Settlement for this bond is scheduled for around mid-July, pending customary conditions, including necessary lender consents related to the company's USD 1.4 billion reserve-based lending facility. Efforts are underway to list the bonds on the Oslo Stock Exchange, ensuring further transparency and accessibility for investors.
Utilization of Proceeds
Net proceeds from this bond issue will be utilized primarily to refinance any outstanding parts of the company’s currently existing subordinated convertible bonds, identified by ISIN NO 0012780867, known as BNOR15. Importantly, the company plans to execute a clean-up call regarding BNOR15, as the threshold for remaining bonds has been surpassed, allowing for a complete redemption of any outstanding BNOR15 bonds.
Key Players Involved
A number of reputable firms played significant roles in facilitating this hybrid bond issuance. Arctic Securities AS, Clarksons Securities AS, DNB Carnegie (a division of DNB Bank ASA), and Pareto Securities AS were appointed as Joint Bookrunners for this financing transaction. In addition, ABN AMRO Bank N.V, Fearnley Securities AS, and Sparebank 1 Markets AS assisted as Co-Managers. Furthermore, legal guidance was provided by Advokatfirmaet BAHR AS for the company and by Advokatfirmaet Thommessen AS for the managers involved.
Conclusion on Future Prospects
BlueNord ASA’s successful hybrid bond issuance marks an important addition to its financial strategy. By refinancing existing obligations and freeing up equity, the company is well-positioned to advance its operational goals and enhance shareholder value.
Frequently Asked Questions
What is the amount raised through the new hybrid bond issue?
The hybrid bond issue raised USD 300 million for BlueNord ASA.
What is the interest rate for the new bond?
The bond carries a fixed interest rate of 12% per annum, payable semi-annually.
How will the proceeds be used?
Proceeds will primarily be used to refinance outstanding subordinated convertible bonds.
Who were the key players involved in this issuance?
Arctic Securities AS, Clarksons Securities AS, and DNB Carnegie acted as Joint Bookrunners, among others.
What is the significance of this bond issuance for BlueNord?
This issuance allows BlueNord to maintain financial flexibility and reduce equity dilution.
