Kvalitena to refinance up to SEK 1 billion bonds due Sept. 30, 2020

By Rebecca Melvin

New York, July 8 – Kvalitena AB said it is seeking to refinance up to SEK 1 billion senior bonds due Sept. 30, 2020 due to challenges in the capital markets resulting from government containment measures to reduce the spread of the Covid-19 pandemic.

The company is initiating a written procedure under the terms of conditions of the bonds, which will among other things extend the maturity by 12 months to Sept. 30, 2021, according to a company news release.

In connection with the proposed changes, the majority owner will strengthen the company’s financial position by transferring a real estate portfolio comprised mainly of community service properties located in Texas to Kvalitaena.

Holders voting in favor of the written procedure will receive a consent fee of 1% of the nominal amount to be paid and the redemption price at maturity will be 103% of the nominal amount.

Holder of more than 42% of the notes have expressed support to vote in favor of the proposal, but a quorum of at least 50% of the adjusted nominal amount of bonds is required to permit a vote, and a majority of at least two thirds of the adjusted nominal amount must vote in favor of the proposal.

Nordic Trustee is sending notice of the written procedure to the noteholders on Wednesday, and voting will be held July 13 to July 27. To be eligible to participate in the written procedure a person must fulfill the formal criteria for being a noteholder on July 14.

Kvalitena is a property developer based in Stockholm.

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