Earlier this month, Color Group AS successfully completed a new subordinated perpetual hybrid bond issue with an initial tranche of NOK 500 million and a borrowing limit of NOK 1 billion. With no specified maturity, the bonds have a first call date in December 2024 (4.25 years) after which there is an annual 5% step-up to incentivize redemption. The bonds were priced at three-month NIBOR + 1,200 bps, at the wide end of initial price talk. Although unsecured, the bonds are guaranteed by the issuer’s operating subsidiary, Color Line AS. Net proceeds from the new bond issue will be used for general corporate purposes. Details of the offering are shown below in the Guts of the Deal.
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