SBB contemplates a directed share issue to support its ambition of reaching an investment-grade rating by optimizing the capital structure as well as to procure additional working capital
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Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB” or the “Company”) and SEB Corporate Finance will evaluate the conditions for a directed share issue of approximately 15 million new common shares of class D to institutional investors, through an accelerated book-building procedure. The issuance is an important step in SBB’s intention to actively manage its portfolio so that the balance shifts more towards social infrastructure (elderly care homes, group housing and schools) and residential focusing on the target to achieve and maintain a BBB rating.
The directed share issue in brief
The directed share issue is intended to be conducted through an accelerated book-building procedure, based on the authorisation given by SBB’s extraordinary general meeting held 5 November 2018, and may entail an issue of approximately 15 million new common shares of class D (corresponding to a dilution of approximately 1.84 percent of the outstanding number of shares and approximately 0.55 percent of the outstanding number of votes in the Company). The Company believes that using the flexibility provided by the non-preemptive placing is the most appropriate way to diversify the shareholder base among Swedish and international investors and at the same time raise capital in a time efficient manner.
The Company intends to use the proceeds from the directed share issue to support the ambition of reaching an investment-grade rating by optimizing the capital structure and the updated financial target of a loan to value ratio below 50 percent as well as to procure additional working capital in order to, e.g., effect investments into portfolio optimization so that the balance shifts more towards social infrastructure (elderly care homes, group housing and schools) and residential focusing on the target to achieve and maintain a BBB rating.
The accelerated book-building procedure will begin today at 17:31 on 3 April 2019 and may close at any time on short notice. The book-building procedure may be cancelled at any time at the discretion of the Company. The Company will announce the outcome of the book-building procedure in a subsequent press release once completed.
The directed share issue is, among other things, subject to a resolution by the board of directors of SBB, pursuant to the authorisation granted by the extraordinary general meeting, following close of the book-building.
Advisers
SEB is appointed as Sole Financial Advisor and Bookrunner and Vinge is acting as legal counsel to the Company in connection with the capital raising.
For further information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, ilija@sbbnorden.se
This is information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was sent for publication, through the agency of the contact person set out above, on 3 April 2019 at 17:31 CET.
About Samhällsbyggnadsbolaget i Norden AB (publ)
The company’s strategy is to own, manage and develop community service properties throughout the Nordic region and rental apartments in growth regions in Sweden. Through the company's commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the company an attractive long-term partner. At the beginning of 2018, SBB was named the winner of the Real Estate Company of the Year Award for 2017. The company’s series B shares (short name SBB B), D shares (short name SBB D) and preference shares (SBB PREF) are listed on Nasdaq First North Premier. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). More information about the company is available at www.sbbnorden.se.
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Forward-looking statements
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