ICA Gruppen to redeem preference shares early
ICA Gruppen has decided on early redemption of the preference shares issued in December 2013 in the subsidiary ICA Fastigheter Sverige AB. Redemption will take place at 110% of the subscription price which represents a redemption amount of SEK 3.3 billion.
The preference shares were issued in December 2013 as part of the refinancing of the bridge loan raised in conjunction with the acquisition of ICA AB in spring 2013. Against the background of interest rate development over the past year, we now replace the preference shares with a more cost-effective solution.
The record date for redemption is 15 July and the payment date is 20 July 2015.
The preference shares are unlisted and held in equal parts by AMF Pensionsförsäkring AB and If Skadeförsäkring AB. Other agreements, relating among other things to restrictions on the debt/equity ratio in ICA Fastigheter Sverige AB will cease to apply in conjunction with redemption.
At 31 March 2015, ICA Gruppen’s interest-bearing net debt amounted to SEK 13,596 million corresponding to a net debt of 2.3 times EBITDA (rolling 12 months). Payment received for the divestment of ICA Norway, dividend paid and redemption of the preference shares mean, all other things being equal, that net debt compared with 31 March will increase to 2.6 times EBITDA. ICA Gruppen’s long-term target is a net debt of less than 2.0 times EBITDA.
For more information
ICA Gruppen press service, telephone number: +46 10 422 52 52
Investor Relations, Frans Benson, +46 8 561 500 20
ICA Gruppen AB discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.45 CET on Thursday, 4 June 2015
ICA Gruppen AB (publ) is a leading retail company with a focus on food and health. The Group includes ICA Sweden and Rimi Baltic which mainly conduct grocery retail, ICA Real Estate which owns and manages properties, ICA Bank which offers financial services and Apotek Hjärtat which conducts pharmacy operations. The Group also includes the wholly owned portfolio company inkClub and the partly owned portfolio company Hemtex. For more information see icagruppen.se