Magnolia Bostad AB (publ) issues new senior unsecured bonds and issues a notice of early redemption of its outstanding bonds
Magnolia Bostad AB (publ) (the “Company” or “Magnolia Bostad”) has today successfully placed senior unsecured bonds in an amount of SEK 825,000,000 with a tenor of three years (the “New Bonds” or the “New Bond Issue”). The New Bonds will carry floating interest of STIBOR 3m plus 8.75 per cent. per annum and will be issued at par. The issue date for the New Bonds is expected to be 11 February 2025.
The tender offer which was announced by the Company on 21 January 2025 in relation to the Company’s existing senior unsecured floating rate bonds 2020/2025 with ISIN SE0014956454 and an outstanding nominal amount of SEK 275,964,480, senior unsecured floating rate bonds 2021/2025 with ISIN SE0015659636 and an outstanding nominal amount of SEK 725,000,000 and senior unsecured floating rate bonds 2022/2026 with ISIN SE0017565203 and an outstanding nominal amount of SEK 300,000,000 (together the “Existing Bonds”) (the “Tender Offer”) expires tomorrow 24 January 2025 at 15.00 CET and the outcome of the Tender Offer will thereafter be published by the Company by way of a press release.
In accordance with the Company’s press release on 21 January 2025, the Company will, subject to a successful settlement of the New Bond Issue, fully redeem early its outstanding Existing Bonds not being tendered in the Tender Offer (the “Early Redemption”). Provided that the conditions for Early Redemption are met (which will be announced separately), the Existing Bonds will be redeemed on 20 February 2025 (the “Redemption Date”) at the redemption price of 108.00 per cent. of the nominal amount for the 2020 Bonds, 100.00 per cent. of the nominal amount for the 2021 Bonds and 103.10 per cent. of the nominal amount for the 2022 Bonds together with accrued but unpaid interest up to (and including) the Redemption Date (the “Redemption Price”). The Redemption Price will be paid to each person who is registered as owner of the relevant Existing Bonds in the debt register maintained by Euroclear Sweden at the end of business on 13 February 2025. In connection with the Early Redemption, the Existing Bonds will be de-listed from Nasdaq Stockholm. A notice of early redemption will today be sent to holders directly registered in the debt register as owners of the relevant Existing Bonds as per 22 January 2025. The notice of Early Redemption will also be available at the Company’s website.
“We want to thank old and new investors for their trust in Magnolia and support in making this refinancing a success. With a stable and long-term financing structure now in place, Magnolia is well-positioned to capitalise on its strong market position and deliver on its business plan over the coming years”, says Johan Tengelin, CEO of Magnolia Bostad.
Pareto Securities AB acted as Global Coordinator and Joint Bookrunner and Nordea Bank Abp acted as Joint Bookrunner for the New Bond Issue. The Joint Bookrunners acts as Dealer Managers in connection with the Tender Offer. Gernandt & Danielsson acts as legal advisor to the Company.
For further information, please contact Magnolia Bostad:
Fredrik Westin, Deputy CEO & CFO
[email protected] , +46 72 720 00 06
About Magnolia Bostad
Magnolia Bostad AB, CIN 556797-7078, develops new residential properties, rental apartments, tenant-owned apartments, and community service properties in attractive locations in Sweden's growth areas and major cities. Housing is developed both for sale and self-management. Our work is based on a holistic approach where the operations are carried out in a way that promotes long-term, sustainable urban development. The company's bonds are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se