MAGA BOST: Information from Magnolia Bostad concerning the upcoming adjustments to the capital structure following the takeover bid and the opening of written procedures for outstanding bond issues

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Upcoming adjustments in the Company’s capital structure

The board of directors of Magnolia Bostad AB (publ) (“Magnolia Bostad” or the “Company”) have been informed by F Holmström Holding 6 AB (“FFH”) and its owner F. Holmström Fastigher AB and funds and entities managed and advised by Areim AB (“Areim”) that FHH intends to make the following adjustments to the capital structure of the Company after FHH has now finalized the tender offer to the shareholders of Magnolia Bostad and thereby becoming the owners of more than 90 percent of all the shares of the Company.

  1. Over time, the FHH intends to contribute 2,000 MSEK to Magnolia Bostad, funds that will be provided to FHH by Areim.
  1. In the short term, the FHH intends to October 2021 refund Magnolia Bostad’s outstanding senior unsecured bonds due 2022, with a nominal amount of MSEK 500 (ISIN: SE0011721497) (Magnolia Bostad own 70 MSEK). To finance the repayment of the bond, FHH will make a contribution of around MSEK 440 in the form of equity or equity-like instruments to be structured so as to be classified as equity in Magnolia Bostad’s balance sheet. This is part of the total of 2,000 MSEK to which FHH intends to contribute Magnolia Bostad.

In addition, the FHH intends to maintain Magnolia Bostad’s Financial target intact with at least 30 percent creditworthiness. The intention is to adjust the dividend target to MSEK 100 per year but not to distribute more than 50 percent of the net profit of previous years.

Initiation of written procedures for outstanding bond issues

Magnolia Bostad have on 23 Aug 2021 initiated written procedures (the “Written Procedures”) in respect of two of its current bond issues 2020/2024 with ISIN SE0014956454 and 2021/2025 with ISIN SE0015659636 (jointly the “Bonds”) to request the agreement of the bondholders to the modifications concerning the change of control and the provisions for delisting from the terms and conditions of the Bonds (the “Amendments”) in the context of the aforementioned public tender offer. The objective of the Amendments is to ensure that the Bonds can remain in circulation also after the closing of the public tender offer and the subsequent delisting of the shares of the Company, by adjusting the put option of the bondholders.

The Company offers some compensation to bondholders for accepting the Amendments, as further described in the notices to the Written Procedures.

For changes to be accepted, at least twenty (20.00) percent. of the adjusted nominal amount must respond in the written procedure and at least two-thirds (2/3) of the adjusted nominal amount for which the bondholders respond in the written procedures must consent to the modifications, which is detailed in the notices of the Written Procedures.

More information on the voting conditions, the important dates for the Written Procedures and the compensation for accepting the Amendments can be found in the notices of the Written Procedures.

Magnolia Bostad have on 23 Aug 2021 educated Nordic Trustee & Agency AB (publ) (the “Agent”), in its capacity as agent under the Bonds, to send Written Procedure notices including voting instructions to the direct registered owners and authorized agents of record of the Bonds in the general ledger of the Company’s debt held with Euroclear Sweden according to August 20, 2021. Notices of the Written Procedures are available on the Company’s website and on the Agent’s website.

The outcome of the Written Procedures will be announced in a press release as part of the close of the Written Procedures. The recording date of the vote is August 30, 2021 and the last day to vote in the written procedures is September 9, 2021. Written Procedures may however be closed before the expiration of the response period if the required majority has been obtained.

The Company has appointed Nordea Bank Abp and Skandinaviska Enskilda Banken AB (publ) as solicitation agents in the Written Procedures.

For any other questions regarding the transaction, please contact Solicitation Agents at the following telephone numbers:

Nordea Abp Bank
Email: [email protected]
Telephone: +45 5546 9082

Skandinaviska Enskilda Banken AB (published)
E-mail: [email protected]
Telephone: +44 7880 783 998

For any questions regarding the administration of the Written Procedure, documentation and voting procedure, please contact the Agent at [email protected] or +46 8 783 79 00.

The board of directors of Magnolia Bostad AB (published)

For more information on Board of Directors information, contact:Risto silander, for the board of directors
70 240 00 00, [email protected]

Fredrik westin, CFO
72 720 00 06, [email protected]

This information is information such as Magnolia Bostad AB (publ) are required to disclose in accordance with EU market abuse regulations. The information has been provided by the above contact person, for public disclosure on 23 Aug 2021 12.55 CEST.

Magnolia Bostad AB, CIN 556797-7078, is a leading urban developer developing new residential properties, primarily rental apartments, but also tenant-owned apartments, community service properties and hotels, in attractive locations around from Sweden growth areas and large cities. Housing is developed both for sale and for self-management. Our work is based on a holistic approach where operations are conducted in a way that promotes sustainable and long-term urban development. Magnolia Bostad’s The shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.com

https://news.cision.com/magnolia-bostad-ab/r/information-from-magnolia-bostad-regarding-upcoming-adjustments-in-the-capital-structure-following-t,c3401430

https://mb.cision.com/Main/12686/3401430/1457635.pdf

(c) Decision 2021. All rights reserved., source Press Releases – English

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