Kährs BondCo AB (publ) successfully issues new senior secured floating rate bonds and announces results from tender offer and its intention to early redeem its outstanding bonds
Kährs BondCo AB (publ) (the "Company") has successfully issued new senior secured floating rate bonds in a volume of SEK 1,450,000,000 within a framework of up to SEK 2,500,000,000 (the "New Bonds"). The New Bonds will have a tenor of 4 years and carry a floating interest rate of STIBOR three months plus a 6.25 per cent. margin per annum. The proceeds from the issue of the New Bonds will be used to repurchase and/or redeem all of the Company's Existing Bonds (as defined below), finance general corporate purposes of the group and transaction costs relating to, amongst other things, the issuance of the New Bonds.
On 17 October 2024, the Company announced an offer to the holders of the Company’s outstanding up to SEK 2,500,000,000 senior secured sustainability linked floating rate bonds 2021/2026 with ISIN SE0017085285 (the "Existing Bonds") to tender any and all of their Existing Bonds for purchase by the Company for cash at a price of 102.333 per cent. of the nominal amount plus any accrued and unpaid interest (the "Tender Offer"). The Tender Offer expired today (24 October 2024) at 10.00 CEST and was made subject to the terms and conditions described in the tender information document dated 17 October 2024.
At the time of expiration of the Tender Offer, the Company had received valid tenders in an aggregate nominal amount of SEK 984,975,000 pursuant to the Tender Offer. The Company has accepted to purchase all valid tender instructions from holders of Existing Bonds. Subject to the successful settlement of the New Bonds (including receipt of proceeds), the Company intends to complete the Tender Offer and repurchase the tendered and accepted Existing Bonds at the tender offer price together with accrued and unpaid interest from, but excluding, the previous interest payment date until, and including, the settlement date for the Tender Offer. Settlement of the transaction pursuant to the Tender Offer is expected to occur on or about 14 November 2024.
Subject to the successful settlement of the New Bonds (including receipt of proceeds) and the satisfaction of the conditions precedent for the New Bonds (the fulfilment of such conditions to be announced by the Company through a separate press release), the Company also intends to redeem in full its Existing Bonds not repurchased in the Tender Offer (which will be cancelled prior to the redemption in accordance with the terms and conditions of the Existing Bonds). The price for such early redemption will be 102.133 per cent. of the nominal amount plus any accrued and unpaid interest from, but excluding, the previous interest payment date until, and including, the settlement date for such early redemption in accordance with the terms and conditions of the Existing Bonds (the "Redemption Price"). The Redemption Price will be paid to each person who is registered as owner of Existing Bonds in the debt register maintained by Euroclear Sweden at the end of business on 2 December 2024. A conditional notice of the early redemption will be sent to directly registered owners of the Bonds.
For additional information, please contact:
Johan Magnusson
CEO, Kährs
Tel.: +46 705 40 13 96
Email: johan.magnusson@kahrs.com
Andreas Larsson
CFO, Kährs
Tel.: +46 702 42 03 65
Email: andreas.larsson@kahrs.com
This information is information that the Company is obliged to make public pursuant to the EU Market Abuse Regulation (596/2014/EU). The information was submitted for publication, through the agency of the contact person set out above, at 18.00 CEST on 24 October 2024.
About Kährs BondCo AB (publ)
Kährs BondCo AB (publ) is a leading manufacturer and distributor of flooring with the aim of providing customer experiences beyond expectations. Kährs innovations have shaped the industry throughout its history and the company is dedicated to offering flooring solutions for every room, environment and need. The company delivers sustainable and durable flooring solutions to more than 70 countries, being a market leader in hardwood flooring in Sweden and Finland and having strong positions in other key markets, such as Norway, the UK, USA, and Germany. The Group has approximately 1,100 employees and annual sales of SEK 2,9 billion (2023). www.kahrsgroup.com