(ADPnews) – Aug 6, 2010 - Bulgarian renewable energy producer and woolen products maker Runo-Kazanlak AD will prepay part of the principal of its EUR 10 million (USD 13m) bond issue, according to a proposal approved by bondholders at an extraordinary meeting on Monday, the company said.
Runo will prepay EUR 689,000 including interests and a 1% commission fee for the prepayment. The money will be transferred by the end of August to all bondholders registered with the depositary by July 29.
The move will reduce the outstanding principal to EUR 1.45 million on which the company will pay interests until maturity in August 2011.
Bondholders also gave the thumbs-up to a proposal to remove the pledge that secured the bonds. The pledge included the revenue from the production at hydro power plants Kitka, Midjur, Gorni Lom and Falkovets.
Another proposal that got the go-ahead at the bondholders’ meeting will see Venture Equity Holding become the single proprietor of Runo’s capital through the acquisition of local companies Katex, ST Engineering, the insolvent Hidroenergetika Bulgaria and Evard.
In 2003, Runo acquired eight former state-owned hydro power generation facilities for a combined BGN 32.9 million (USD 22.2m/EUR 16.8m). Their output is supplied to local power distributors and state-run utility NEK under feed-in tariffs.
(EUR 1.0 = USD 1.317)
(BGN 1.0 = USD 0.674/EUR 0.511)