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Kährs BondCo explores the possibility to issue senior secured floating rate bonds and announces a tender offer, its intention to early redeem its outstanding bonds and provides a financial update

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Kährs BondCo AB (publ) (the "Company") hereby announces that it has mandated DNB Markets, a part of DNB Bank ASA, Sweden Branch, Nordea Bank Abp and Pareto Securities AS as joint bookrunners to explore the possibility to place an up to SEK 1,450,000,000 senior secured floating rate bonds issue with a framework of up to SEK 2,500,000,000, subject to market conditions (the "New Bonds"). 

The proceeds from the potential bond issue 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.

In connection with and subject to the issuance of the New Bonds, the Company has today announced an offer to holders of its 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 Bonds at a price of 102.333 per cent. of the nominal amount plus accrued but unpaid interest (the "Tender Offer"). The Existing Bonds will be repurchased subject to the terms and conditions described in the tender information document dated 17 October 2024 (the "Tender Information Document"), which is accessed via the following link: https://www.kahrsgroup.com/en/investor-relations/other-financial-information/

The Company will, in connection with the allocation of the New Bonds, consider, among other factors, whether or not the relevant investor seeking an allocation of the New Bonds has, prior to such allocation, validly tendered Existing Bonds pursuant to the Tender Offer, subject to the terms set out in the Tender Information Document. The Tender Offer expires at the later of (i) 12.00 CEST on 23 October 2024, and (ii) the pricing date of the New Bonds, which will be announced by the Issuer in connection with the closing of the book building process for the New Bonds (the "Expiration Date") unless extended, shortened, re-opened, withdrawn or terminated at the sole discretion of the Issuer. Settlement of the Tender Offer is expected to occur approximately fifteen business days after the Expiration Date, such settlement date to be communicated as part of the New Bonds book building process. The Company’s repurchase of the Existing Bonds is conditional upon the successful issue of the New Bonds. The Company has mandated DNB Markets, a part of DNB Bank ASA, Sweden Branch, Nordea Bank Abp and Pareto Securities AS to act as managers in connection with the Tender Offer.

Subject to the settlement of the New Bonds (including receipt of proceeds), the Company intends to exercise its right to carry out an early redemption in full of all Existing Bonds (not repurchased in the Tender Offer) on or after 9 December 2024. The price for such early redemption will be 102.133 per cent of the nominal amount plus any accrued and unpaid interest. The conditions relating to the redemption of the Existing Bonds will be announced by the Company by way of a separate press release.

The Company hereby provides selected key consolidated financial information for the group as of 30 September 2024 and for the last twelve-months period ending on 30 September 2024 ("LTM"), which has been compiled by the Company as part of the preparations for the intended issue of the New Bonds. 

  • LTM net sales of SEK 2,458 million.
  • LTM adjusted EBITDA of SEK 250 million, including the effects of IFRS16; and LTM pro forma adjusted EBITDA of SEK 334 million.
  • The group's cash and cash equivalents amounted to SEK 166 million and the Issuer’s credit facility with DNB and Nordea was undrawn.
  • The group's reported net debt amounted to SEK 1,360 million, taking into account IFRS16.

The financial information set out above is unaudited and unreviewed by the Company's auditor.
 

For further information, please contact:
Johan Magnusson, President and CEO
Phone: +46 70 540 13 96 
johan.magnusson@kahrs.com
 
Andreas Larsson, CFO 
Phone: +46 70 242 03 65 
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 persons set out above, at 08.00 CEST on 17 October 2024.
 
 

About Kährs BondCo AB (publ)
About 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

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