Magnolia Bostad AB (publ) considers issuance of new senior unsecured green bonds and announces partial tender offer regarding certain outstanding senior unsecured bonds

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) 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.

Magnolia Bostad AB (publ) (“Magnolia” or the “Issuer”) is offering holders of the Issuer’s outstanding bonds outlined below (the “Bonds”) to tender their Bonds for purchase by the Issuer for cash (the “Tender Offer”) at the purchase price set out below, plus accrued and unpaid interest. The Tender Offer will be capped at a maximum volume of SEK 300,000,000. The Bonds will be repurchased subject the terms and conditions described in a tender information document dated 17 September 2020 (the “Tender Information Document”).

Description of the Bonds / ISIN / Issued Amount / Outstanding Amount / Minimum Denomination / Purchase Price

2016/2021 Sr Unsec FRN / SE0009155625 / SEK 600,000,000 / SEK 600,000,000 / SEK 1,000,000 / 101.75%

The full terms and conditions of the Tender Offer can be found in the Tender Information Document, which is available in the following link: http://ir.magnoliabostad.se/en/reports-presentations/prospectus.

In connection with the Tender Offer, the Issuer announces that it contemplates to issue new SEK denominated senior unsecured green bonds with a target of SEK 500,000,000 under a framework of SEK 700,000,000 with an expected tenor of 3.5 years (the “New Bonds”), subject to market conditions.

As per Magnolia’s Green Bond Framework, the proceeds will be put towards the financing or re-financing of environmentally sustainable buildings. Magnolia’s Green Bond Framework has been awarded a “Medium Green Shade” by the reputable second party opinion provider Cicero Shades of Green

The Tender Offer expires at 12:00 CEST on 24 September 2020, unless extended, re-opened, withdrawn or terminated at the sole discretion of the Issuer. Settlement of the Tender Offer is expected to occur at or around 2 October 2020. The Issuer’s repurchase of Bonds is conditional upon a successful issue of New Bonds.

Holders of Bonds who accept the Tender Offer will be eligible to receive a priority in the allocation of the New Bonds, subject to the terms set out in the Tender Information Document.

The Issuer has mandated Nordea Bank Abp and Pareto Securities AB as joint arrangers and bookrunners in respect of the issuance of the New Bonds and as dealer managers and tender agents for the Tender Offer. Nordea Bank Abp has acted sole structuring advisors to Magnolia in relation to the establishment of the Green Bond Framework.

Attachment: The Tender Information Document.
 

Dealer Managers and Tender Agents:
Nordea Bank Abp: +45 6161 2996, NordeaLiabilityManagement@nordea.com
Pareto Securities AB: PSBondIssue.se@paretosec.com

For further information, please contact the Issuer:
Fredrik Westin, CFO
+46 72 720 00 06, fredrik.westin@magnoliabostad.se

This information is information that the Issuer is obliged to make public pursuant to the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 CEST on 17 September 2020.

Magnolia Bostad AB, CIN 556797-7078, is a leading urban developer that develops new residential properties, including rental apartments and tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad's shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se