Heimstaden accepts SEK 10.1 billion tendered notes from 13 series

By Marisa Wong

Los Angeles, March 6 – Heimstaden Bostad AB announced the results of its Feb. 27 cash tender offers for 13 series of securities, according to a notice on Monday.

The company said it will accept for purchase SEK 10,103,299,811 aggregate principal amount of securities tendered under the offers.

The total purchase consideration, excluding accrued interest, for the accepted securities will be SEK 9,333,366,687.

The company said the purchase consideration will be partially funded by new equity raised from new and existing shareholders in an amount of SEK 3,337,000,000 and partially funded by existing liquidity available to the company.

As reported, the company had proposed to accept for purchase up to a maximum principal amount such that the total purchase consideration for securities tendered and accepted for purchase (excluding accrued interest) does not exceed SEK 8.5 billion.

The company decided to upsize the transaction and use its existing liquidity for this liability management exercise. The maximum equity commitment of SEK 4.5 billion was not fully utilized, because certain non-accepted tender bids did not satisfy the company’s liability management target, according to Monday’s notice.

The offers expired at 11 a.m. ET on March 3. The offers are expected to settle on March 14.

The purchase price is fixed for five of the series. For the remaining series, pricing will be determined under a separate unmodified Dutch auction. The final results of the offers are as follows:

• SEK 733 million accepted of the SEK 1.05 billion outstanding floating-rate notes due Nov. 23, 2023 (ISIN: XS2412109105), with the purchase price fixed at par;

• SEK 2,168,000,000 accepted of the SEK 2.8 billion outstanding 0.933% notes due Nov. 23, 2023 (ISIN: XS2412106002), with the purchase price fixed at 98;

• SEK 750 million accepted of the SEK 850 million outstanding 0.875% notes due Jan. 22, 2024 (ISIN: XS2420346517), with the purchase price fixed at 97.25;

• €95,809,000 accepted, at a scaling factor of 40%, of the €700 million 2.125% notes due Sept. 5, 2023 (ISIN: XS1958655745), €450,004,000 of which is outstanding, with the purchase price fixed at 99.35;

• €192.97 million accepted of the €700 million outstanding callable floating-rate notes due Jan. 19, 2024 (ISIN: XS2430702873), with the purchase price fixed at 99;

• €43,133,000 accepted of the €1.25 billion outstanding 0.25% notes due Oct. 13, 2024 (ISIN: XS2397239000), €1,239,600,0002 of which is outstanding, with a minimum purchase price of 91.35;

• €22,799,000 accepted, with a scaling factor of 50%, of the €700 million 0.625% notes due July 24, 2025 (ISIN: XS2435603571), €698.8 million of which is outstanding, with a minimum purchase price of 87.5;

• €15,268,000 accepted, with a scaling factor of 50%, of the €500 million 1.125% notes due Jan. 21, 2026 (ISIN: XS2105772201), with a minimum purchase price of 86.75;

• €26,862,000 accepted, with a scaling factor of 50%, of the €700 million 1.375% notes due March 3, 2027 (ISIN: XS2225207468), with a minimum purchase price of 83.75;

• €62,598,000 accepted, at a scaling factor of 75%, of the €750 million 1% notes due April 13, 2028 (ISIN: XS2397252102), €716,900,0004 of which is outstanding, with a minimum purchase price of 78.25;

• €14,885,000 accepted of the €500 million 1.375% notes due July 24, 2028 (ISIN: XS2435611244), €484,700,0005 of which is outstanding, with a minimum purchase price of 78;

• €65,663,000 accepted of the €750 million 0.75% notes due Sept. 6, 2029 (ISIN: XS2384269366), €743,300,0006 of which is outstanding, with a minimum purchase price of 70.75; and

• €39,365,000 accepted of the €750 million 1.625% notes due Oct. 13, 2031 (ISIN: XS2397252011), €739,200,0007 of which is outstanding, with a minimum purchase price 69.75.

The company will also pay accrued interest.

Tender instructions that do not specify an offer price or specify an offer price equal to or below the minimum purchase price will be treated as non-competitive tender instructions.

For any series of auction securities (the securities without fixed purchase prices), the company will accept for purchase all securities tendered under non-competitive instructions if it accepts for purchase any securities tendered under competitive instructions.

If the company accepts a non-competitive tender, the relevant holder will receive the minimum purchase price for the relevant series.

BNP Paribas (+33 1 55 77 78 94; liability.management@bnpparibas.com), Citigroup Global Markets Limited (+44 20 7986 8969; liabilitymanagement.europe@citi.com), Danske Bank A/S (+45 33 64 88 51; liabilitymanagement@danskebank.dk), Deutsche Bank AG (+44 20 7545 8011), J.P. Morgan SE (liability_management_EMEA@jpmorgan.com) and Swedbank AB (publ) (liabilitymanagement@swedbank.se; syndicate@swedbank.se; attn.: Johan Thureson) are acting as dealer managers for the offers.

The tender agent is Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: David Shilson; heimstaden@is.kroll.com; https://deals.is.kroll.com/heimstaden).

The purpose of the offers is to proactively improve the company’s liability composition and debt maturity profile.

Heimstaden is a real estate company based in Malmo, Sweden.

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