Comment in relation to Change of Control Event for senior unsecured notes issued by D. Carnegie & Co AB (publ)
As announced by D. Carnegie & Co AB (publ) (“ D. Carnegie & Co ” or the “ Company ”) on 14 October 2016, Vega Holdco Sarl (“ Vega ”), an entity wholly owned by real estate funds advised by the Blackstone Group L.P., completed the second acquisition of shares in the Company and now controls, through agreement with Kvalitena AB and Frasdale Int. BV, 53 per cent of the votes in the Company.
As a result thereof, the board of directors of the Company have determined that a Change of Control Event has occurred under the terms and conditions dated 17 April 2015 (the “ 2015 T&Cs ”) for the up to SEK 1,000,000,000 senior unsecured floating rate notes due April 2018 (the “ 2018 Notes ”) and the terms and conditions dated 16 April 2016 (the “2 016 T&Cs ”, and together with the 2015 T&Cs the “ T&Cs ”) for the up to SEK 1,000,000,000 senior unsecured floating rate notes due April 2019 (the “ 2019 Notes ” and together with the 2018 Notes, the “ Notes ”).
Due to the occurrence of a Change of Control Event, the holders of the Notes (jointly, the “ Noteholders ”), have a right to request that their Notes are repurchased at a price per Note equal to 101 per cent of the nominal amount together with accrued but unpaid interest. If a Noteholder wishes to exercise its right to request that its Notes shall be repurchased, such Noteholder shall within 20 business days from the date of the notice sent to Noteholders of the Change of Control Event (being 17 November 2016) notify the Company in accordance with the instruction set out in such notice. The Company will repurchase the relevant Notes and pay the repurchase amount on 16 January 2017).
Stockholm on 17 October 2016
D. Carnegie & Co AB (publ)
For further information, please contact
Ulf Nilsson, CEO, D. Carnegie & Co, tel. +46 (0)8 – 121 317 25
This information is information that D. Carnegie & Co AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 6.00 p.m. CEST on 17 October 2016.
About D. Carnegie & Co
D. Carnegie & Co is a property company focusing on residential properties in the Greater Stockholm region and other growth areas. The company’s business concept is to own property portfolios slated for a gradual renovation of apartments in conjunction with the natural turnover of tenants. This can take place quickly and cost-efficiently thanks to extensive experience from the Bosystem renovation method which, among other things, means that no evacuation needs to take place. In addition to this, the company creates value through the development of building rights in existing portfolios. The market value of the company’s properties amounted to SEK15,205 million on 30 June 2016. The total rental value amounted to SEK 1,349 million annually on 30 June 2016. The economic occupancy rate is high – vacancies are virtually non-existent. D. Carnegie & Co is listed on Nasdaq Stockholm.