Catena Media Gains Bondholder Approval for Key Financial Amendments
Catena Media has successfully concluded a significant step in its financial strategy, receiving unanimous consent from bondholders in a recently concluded Written Procedure.
This marks a pivotal moment for the company, underlining its agility and foresight in financial management.
Successful Conclusion of Written Procedure
The Written Procedure, initiated on December 19, 2023, aimed to secure bondholder approval for amendments to the terms and conditions of its bond loan 2021/2024 (ISIN SE0015807888). Managed by Nordic Trustee & Agency AB (publ) as the Agent, the procedure has achieved its goal, reflecting Catena Media’s strong bondholder relations.
The proposed amendments, now approved, include a twelve-month extension of the Bonds’ final redemption date and a mandatory partial prepayment of 50% of the outstanding nominal amount. This strategic move is set to enhance Catena Media’s financial flexibility, aligning bond repayments with anticipated proceeds and allowing the company to concentrate on its core business operations.
Substantial Reduction in Outstanding Bond Amount
Post the Written Procedure and subsequent mandatory partial prepayment, the total nominal amount of the Bonds stands at EUR 27,500,000, significantly reduced from the previous EUR 55,000,000. Catena Media’s holdings in the Bonds are now at EUR 6,150,000, reflecting an adjusted total nominal amount of EUR 21,350,000.
Göran Blomberg, Chairman of the Board of Directors, comments on this development: “We are pleased that the holders of bonds have accepted the amendments to the terms and conditions which will ensure that the bond repayments will be matched with expected proceeds – improving Catena Media’s financial flexibility and allowing the company to focus on the underlying business.”
Details of the Amendments
Key changes to the Bonds’ terms include:
- Extension of the final maturity date to June 9, 2025.
- Mandatory partial prepayment of 50% of the outstanding nominal amount at 100.6% of the value, plus accrued interest.
- A consent fee of 1% of the nominal amount of the Bonds to be paid to bondholders.
- A provision allowing Catena Media to redeem the Bonds at 100.6% of the nominal amount during their lifetime.
Catena Media has announced that the payment of the Consent Fee and the Mandatory Partial Prepayment will occur on February 2, 2024. These payments, distributed through Euroclear Sweden, will be made on a pro-rata basis to registered bondholders as of the record date, January 26, 2024.
ABG Sundal Collier AB and Gernandt & Danielsson have been instrumental as financial and legal advisors, respectively, in guiding Catena Media through the Written Procedure.
Our Comment on the Article
Catena Media’s successful navigation through the Written Procedure underscores its strategic financial acumen, essential in today’s dynamic market. This maneuver not only strengthens the company’s fiscal foundation but also reflects its commitment to maintaining robust stakeholder relationships.
The unanimous bondholder approval is a testament to Catena Media’s transparent and effective communication, ensuring all parties are aligned with the company’s long-term vision. As Catena Media continues to evolve, this financial restructuring will play a crucial role in supporting its growth and stability, cementing its position as a formidable player in the iGaming industry.
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