Klovern holders tender SEK 720 million floaters due 2017 via new issue

By Susanna Moon

Chicago, Oct. 26 – Klovern AB (publ) said investors had tendered SEK 720 million of its SEK 1.15 billion floating-rate bonds due Jan. 19, 2017 in the offer that ended at 11 a.m. ET on Oct. 25.

The tender offer was contingent on closing of a new issue, and the company sold SEK 1.5 billion of four-year senior bonds at Stibor plus 390 basis points, according to a company update.

The purchase price is 100.25% of par plus accrued interest to and including the settlement date.

Settlement for the tender has been set for Nov. 2 and will occur as a secondary trade via the dealer managers, the company said.

Klovern said it plans to call the remaining floaters at par plus accrued interest.

As announced Oct. 20, the company was tendering for the floaters via a new issue. For each SEK 1 million of principal bonds of the new issue subscribed for by a holder, Klovern agreed to purchase from that holder SEK 1 million of the January 2017 bonds at the fixed cash price of 100.25.

Holders could receive priority allocation for the new issue based on the January 2017 bonds tendered, the company previously said.

The new issue proceeds will be used to refinance the January 2017 bonds and for general corporate purposes.

The joint bookrunners and dealer managers are Nordea Bank AB (publ) (+45 6161 2996 or nordealiabilitymanagement@nordea.com) and Swedbank AB (publ) (+46 8 700 90 22 or syndicate@swedbank.se).

Klovern is a real estate company based in Nykoping, Sweden.

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