Northern Logistic Property (NLPR) - Underwritten rights issue of NOK 100 million

Monday, 19. October 2009 08:47
In order to strengthen Northern Logistic Property ASA's ("NLP" or
"the Company") balance sheet and prepare for the opportunities and
challenges in the current market, the Board of Directors has decided
to call for an extraordinary general shareholders meeting to be held
primo November 2009 to resolve a share capital increase as follows:

* Structure: Rights issue with tradable rights
* Amount: Approximately NOK 100 million, fully
Guaranteed
* Subscription price: NOK 12
* Subscription rights: One existing share give rights for
0.3136 new shares
* Timing: Planned completion early December
2009

Per Kumle, Chairman of NLP, comments as follows:
"Over the last year, the Board of NLP has evaluated measures to
improve the Company's equity base, including asset sales, reducing
capital expenditures, cutting operating costs and the issuance of new
equity.

The Company has firstly prioritized asset sales as a means of
reducing gearing. As a result of this work, NLP announced on October
13, 2009, an agreement to sell a portfolio of 5 properties with a
gross property value of SEK 525 million to Kungsleden. The
transaction improves the cash position of NLP, removes the need to
refinance the SEK 386 million seller note maturing in 2011, and
removes a potential investment obligation within this portfolio.

NLP, as announced in a press release on October 13, 2009, has entered
into agreements related to two of its loan facilities thereby
removing any uncertainty with regards to compliance with LTV
covenants under both loan facilities until third quarter 2010. In
exchange, the Company has agreed to an accelerated amortisation plan
of SEK 88.3 million in total for the corresponding period for both
agreements.

The Board of Directors has clearly stated in both the Annual Report
and the second quarter report that the Company needs to strengthen
its balance sheet. The announced asset sale combined with the loan
agreement addendums has improved the Company's financial position
significantly, but the Board opines that it is in the shareholders'
best interests to further strengthen NLP's capital base through a
limited equity issue.

The net proceeds will further provide the Company with:

* the opportunity to proactively work with our existing and
potential new customers to meet their need for modern and
efficient logistic properties;
* a base from which the Company can maintain a strong and balanced
relationship with its financing partners and secure future
funding commitments when needed;
* an opportunity to consider acquiring new properties that would
strategically fit the Company's existing asset portfolio; and
* a reduction of the refinancing risk for the debt facility with
Deutsche Pfandbriefbank AG maturing in 2011 which carries an
option to extend the facility for two years from 2011 provided
that NLP is in compliance with each of the undertakings in the
agreement.

After the equity issue, loan to value ("LTV") would, on a pro forma
basis, show a reduction to 76.8% (78.6%) and the solvency ratio would
increase to18.3% (16.6%). The pro forma numbers are based on NLP's
consolidated financial statements as of June 30, 2009, and are not
adjusted for asset sales subsequently announced."

Transaction highlights
The proposed share capital increase will be conducted as a Rights
Issue with pre-emptive rights for existing shareholders in NLP as per
the date of the extraordinary general meeting.

One existing share in NLP will entitle the holder to receive
allocation of 0.3136 new shares in the company. The subscription
rights will be tradable and listed on the Oslo Stock Exchange with
ticker NLPR T. Any subscription rights not used or sold during the
subscription period will lapse and cease to carry any value.

The shares are expected to be traded excluding subscription rights
from the day after the extraordinary general meeting. The
subscription price per new share in the Rights Issue will be NOK
12.00 per new NLP share. This is 40% below the closing price on
October 16, 2009, of NOK 20.00. Furthermore the subscription price
represents a discount of 34% to TERP[1].

The proposed share capital increase has been fully underwritten by a
consortium consisting of existing shareholders. Each underwriter has
undertaken, pro rata to his share of the underwritten amount, to
subscribe for those shares not validly subscribed for within the
subscription period. Any shares subscribed for in the Rights Issue
will be deducted from the underwriter's duties under the underwriting
agreement.

The following primary insiders and related parties are participating
in the underwriting consortium:

* T Klaveness Eiendom AS (Unni Tenold): NOK 18 million
* Satrap Kapitalforvaltning AB (David Mindus): NOK 18 million
* Canica AS (Pål Hvammen): NOK 10 million

The underwriters, representing approximately 41% of the votes of the
Company, have authorized the Chairman of the Board to vote in favor
for the share capital increase at the Company's extraordinary general
shareholders meeting. If the share capital increase has not been
approved by the Company's extraordinary general shareholders meeting
within December 31, 2009, the underwriting commitment will
automatically lapse.

The guarantee consortium has been established by ABG Sundal Collier
Norge ASA who will act as Sole Manager in the Rights Issue.

The Rights Issue is planned to be completed early December 2009.

NLP will prepare a prospectus for the Rights Issue which is subject
to approval from Oslo Børs.


[1] Theoretical ex-rights price


For further information, contact
Per Kumle, Chairman of the Board, Northern Logistic Property ASA,
tel: +47 91 80 39 63, e-mail: per.kumle@nlpasa.com
Per Gunnar Rymer, CEO, Northern Logistic Property ASA,
tel: +47 90 77 76 27, e-mail: per.gunnar.rymer@nlpasa.com

This information is subject of the disclosure requirements according
to the Norwegian Securities Trading Act § 5-12.


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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