SSM summons to meeting with bondholders’ by way of procedure in writing
At the request of SSM Holding AB (publ) (”SSM”) the agent summons to a meeting with the bondholders by way of procedure in writing in order to resolve of amendment of the project undertaking in the bond terms. The purpose of the amendment is to enable SSM to start production of projects based on the aggregated sales rate of the entire project portfolio, which today is based on the individual project’s sales rate. Other bond terms is unchanged. At the end of the first quarter 2018, SSM’s sales rate in ongoing production amounted to 96.4 per cent.
At the request of SSM, the agent today summons to a meeting with the bondholders (the “Holders”) by way of a procedure in writing (the “Written Procedure”) in order to resolve on amending the terms and conditions of SSM’s outstanding bonds (the “Terms and Conditions”) of maximum SEK 700 million (of which SEK 400 million is outstanding) with ISIN SE0008040893 (the “Bonds”).
The notice will set out that the project undertaking of the Terms and Conditions is proposed to be amended. The purpose of the amendment is to enable SSM to start production of projects provided that the sales rate for all SSM’s residential units under production amounts to at least 60 per cent (the “Request”). If SSM does not meet this level, SSM shall still have possibility to start the production of projects provided that binding pre-agreements have been entered into regarding at least 50 per cent of all cooperative apartments in the relevant project.
The reason behind the Request is to increase SSM’s possibilities of starting production of individual projects to an initially lower sales rate, in order to thereafter gradually continue with the sale during the production time of the project. However, SSM intends to constantly maintain a high level of entered pre-agreements and grant agreements on an aggregated level. SSM deems that the Request would be for the benefit of SSM and its shareholders as well as the Holders and that the Request is motivated for commercial purposes. SSM’s level of sales rate of residential units in ongoing production is at a market-leading level and amounted during the end of the first quarter 2018 to 96.4 per cent.
Only Holders who are registered in Euroclear Sweden AB’s debt ledger for the Bonds on the voting record date 13 June 2018 are eligible to cast votes in the Written Procedure. Provided that the Request is approved by a sufficient majority, all Holders that have voted for the Request shall obtain a consent fee equivalent to 0.25 per cent of the nominal amount per Bond that the Holder has voted for the Request with.
In order for the Request to be approved through the Written Procedure, a quorum of at least 50.00 per cent of the adjusted nominal amount must be reached and a majority of at least 75.00 per cent. of the adjusted nominal amount for which Holders are voting in the Written Procedure must approve the Request. SSM has already received undertakings to vote in favour of the Request from the largest Holders (including Spiltan Fonder), which together represent approximately 37 per cent of the adjusted nominal amount. The outcome of the Written Procedures is expected to be announced on or about 20 June 2018, being the last day of voting in the Written Procedure.
The notice of Written Procedure, including complete proposals for resolutions and voting instructions, will be made available on SSM’s web page (www.ssmlivinggroup.com) and will be sent today by the agent to directly registered owners and registered nominees of the Bonds as of 30 May 2018 in the debt ledger produced by Euroclear Sweden AB. Any individual or company whose Bonds are held by a nominee must contact such nominee to participate in the Written Procedure.
For questions regarding the administration of the Written Procedure, please contact the agent at firstname.lastname@example.org or +46 8 783 79 00.
For more information, please contact:
Chief Communications & IR
Telephone: +46 (0)761-65 17 71
About SSM Holding AB (publ)
SSM produces smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group — the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 60 percent cooperative apartments, 30 percent rental units and 10 percent student housing. SSM is the leading property developer in its niche within the Greater Stockholm area and in May 2018, the company has approximately 6,700 building permits in its portfolio. SSM was listed on Nasdaq Stockholm (Mid-cap) April 6, 2017