SSM secures long-term loan financing – signs 2-year agreement to refinance company’s real estate loans
Today, as a step in safeguarding the company’s long-term loan financing, SSM Holding AB (publ) signed a two-year 114 MSEK loan agreement to refinance all of the company’s real estate loans. SSM already has a conditional agreement in place with the majority of the company’s bondholders to extend the company’s bond, which matures in May 2020. Costs for work to refinance the company’s real estate loans and bond will be expensed in the fourth quarter 2019 as a non-recurring item of approximately 14 MSEK.
During 2019, SSM has taken measures to secure the company’s long-term financing and introduce more balanced financial risk-taking in its business model. In addition to the company’s equity, SSM has two external sources of financing in the form of a bond and loans from credit institutions.
On December 13, SSM announced that the company had reached an agreement with majority of its bondholders to amend terms of company’s outstanding bonds. Pursuant to the agreement and provided that certain conditions are met, the maturity date of the bonds will be extended to 2022, i.e. for two years, and the interest rate will remain unchanged. SSM intends to initiate a written procedure to amend the terms during the first quarter 2020.
SSM has now also signed an agreement with Collector Bank AB for loan facilities amounting to 114 MSEK to refinance the company’s real estate loans. The term of the loan is 24 months and the loan will come into effect on December 30, 2019.
- This month, SSM has reached two important milestones that have secured our long-term loan financing – an agreement with a majority of SSM’s bondholders to extend the maturity date of the bonds by two years and the two-year refinancing of the company’s real estate loans. In addition, SSM’s business will be characterized by more balanced financial risk-taking going forward, says Mattias Lundgren, President & CEO of SSM.
The company’s work to secure long-term financing has generated non-recurring costs of approximately 14 MSEK that will impact the fourth quarter 2019 in its entirety.
This information is such information that SSM Holding AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted, through the contact person below, for publication on December 30, 2019 at 12:15 CET.
For more information, please contact:
EVP Communications & IR
Phone: +46 761-65 17 71
About SSM Holding AB (publ)
SSM produces functional smart and affordable housing with attractive communal areas, close to public transport in close proximity to the company´s target group - tomorrow's urbanites. The company´s vision is a housing market with room for as many people as possible. SSM is a leading housing developer in its niche within the Stockholm area, and in September 2019, approximately 4,500 building rights are included in the company´s project portfolio. SSM was listed on Nasdaq Stockholm´s main list April 6, 2017. www.ssmlivinggroup.com