Kvalitena seeks consents to repay SEK 100 million of floaters due 2018

By Susanna Moon

Chicago, July 22 – Kvalitena AB (publ) is asking for holder approval to repay SEK 100 million of its SEK 600 million senior floating-rate notes issue 2015/2018.

The solicitation is being made by written procedure related to a planned asset sale, according to a notice by Nordic Trustee & Agency AB (publ) as agent.

The issuer plans to sell 75% of its holding in D. Carnegie stock for SEK 1.18 billion to real estate funds managed by Blackstone by Sept. 15.

In connection with the sale, the issuer is seeking to repay SEK 100 million of the notes.

As a result, the issuer is proposing to amend the note terms by adding partial amortization, with the issuer able to repay up to SEK 100 million of the notes on one occasion until Sept. 30, in which case all outstanding notes would be partially repaid by reducing the nominal amount of each note pro rata, the trustee said.

The repayment per note would equal the repaid percentage of the nominal amount plus a premium of 3% and accrued interest.

The consent solicitation will end at 11 a.m. ET on Aug. 16. Holders must be of record as of Aug. 5.

The issuer is offering a consent fee of 0.5%.

The amendments require consents from holders of a majority of the notes. To form a quorum, holders representing at least 50% of the adjusted nominal amount must reply to the request under the written procedure.

The trustee noted that the issuer has an equity position of SEK 2 billion, for an equity ratio of 49%, above required ratio of 25% under the note terms.

Kvalitena is a property developer based in Stockholm.

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