Heimstaden issues senior unsecured subsequent bonds of SEK 1,400 million, announces results from tender offer and gives notice of early redemption of outstanding 2021 notes
This press release should be read in conjunction with the press release published by Heimstaden on 13 January 2021 at 09:34 CET and the related Tender Information Document (as defined in and attached to that press release).
No offer or invitation to acquire or sell any securities is being made pursuant to this announcement.
NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED) (THE "SECURITIES ACT") OR IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS DOCUMENT. THE DISTRIBUTION OF THIS DOCUMENT IN CERTAIN JURISDICTIONS (IN PARTICULAR, THE UNITED STATES AND THE UNITED KINGDOM) MAY BE RESTRICTED BY LAW.
Bond issue
Heimstaden AB (publ) (“Heimstaden”) has successfully issued senior unsecured subsequent bonds in the total amount of SEK 1,400 million, made up of SEK 700 million in each of its existing 2020/2024 and 2020/2025 bonds, each under a framework of up to SEK 5,000 million. The maturity dates of the subsequent bonds are 15 January 2024 and 15 October 2025. Both were priced at 100.25% of nominal value, which corresponds to a floating interest rate of STIBOR three months plus 319 bps and 394 bps, respectively.
The proceeds from the subsequent bonds will be used primarily to finance the tender offer and early redemption of the SEK 1,250 million senior unsecured notes maturing on 18 May 2021. The remaining proceeds will be used for general corporate purposes.
An application will be made for the subsequent bonds to be listed on the corporate bond list of Nasdaq Stockholm.
Tender Offer
Heimstaden further announces the results of the tender offer (the “Tender Offer”) to the holders of Heimstaden's senior unsecured notes maturing on 18 May 2021, ISIN SE0009895055 (the “Notes”), with an outstanding amount of SEK 1,250 million. The Tender Offer expired at 12:00 CET on 19 January 2021 and has been accepted by holders representing a total nominal amount of SEK 896 million.
Heimstaden will complete the Tender Offer for the full amount tendered at a price of 100.50% of the Notes’ nominal amount. Heimstaden will also pay accrued and unpaid interest from, but excluding, the previous interest payment date until, and including, the settlement date. Settlement date for the Tender Offer is expected to occur on 26 January 202. After the settlement of the Tender Offer, Heimstaden intends to cancel all tendered Notes.
Settlement of the transactions pursuant to the Tender Offer will occur as a secondary trade via the dealer managers, Nordea Bank Abp and Swedbank AB (publ). All tendering noteholders should coordinate the trade bookings with their local sales representative immediately.
Early redemption
Heimstaden will exercise its right to make a voluntary early redemption of the Notes not being tendered in the Tender Offer, in accordance with clause 9.3.2 of the terms & conditions of the Notes. The Notes will be redeemed at a price equal to 100.00% of the nominal amount plus accrued and unpaid interest from, but excluding, the previous interest payment date until, and including, the early redemption date which is expected to occur on 16 February 2021.
Information about the Tender Offer may be obtained from the Dealer Managers:
Nordea Bank Abp: +45 6161 2996, NordeaLiabilityManagement@nordea.com
Swedbank AB (publ): +46 (0)8 700 90 22, Syndicate@swedbank.se
For further information, please contact:
Arve Regland, CFO
+47 47 90 77 00
arve.regland@fredensborg.no
Adam Lindh, Head of Finance
+46 708-83 96 74
adam.lindh@heimstaden.com
About Heimstaden
Heimstaden is a leading residential real estate company in Europe, with a focus on acquiring, developing and managing housing and premises. Through our values Care, Dare and Share, we create value for our owners and friendly homes for our customers. Heimstaden has about 100,900 apartments and a property value of approximately SEK 139 billion. Heimstaden’s preference share is listed on Nasdaq First North. The head office is located in Malmö. Certified Adviser is Erik Penser Bank aktiebolag, +46 8-463 83 00 and certifiedadviser@penser.se. For more information, visit www.heimstaden.com.
This information is information that Heimstaden is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish securities markets act (2007:528). The information was submitted for publication, through the agency of the contact person set out above, on 20 January 2021 at 08:00 CET