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KMC Properties sets Monday investor meetings ahead of bond offering
By Marisa Wong
Los Angeles, June 23 – KMC Properties ASA has mandated DNB Markets, Pareto Securities and SpareBank 1 Markets as joint lead managers to arrange a series of fixed-income investor meetings beginning Monday, according to a news release.
A senior secured bond transaction of NOK 900 million, with a maximum issue amount of NOK 1.5 billion under potential subsequent tap issue, with a three-year tenor may follow, subject to market conditions.
As previously announced, the company has already secured commitments for long-term bank financing of NOK 1,065,000,000 and recently received additional NOK 15 million extensions. The weighted average interest margin of the bank financing commitments is 271 basis points plus floating interest.
Proceeds from the ongoing financing transactions will be used to refinance existing debt, including the company’s existing NOK 1.85 billion senior secured bond (ISIN: NO0010908163), to pay down the current revolver and for general corporate purposes.
In connection with the bond issue, the company may offer a conditional buyback of the existing bond, which will be contingent on subscription in the new issue.
The company said it expects the ongoing financing transactions to improve its overall interest margin from a weighted average of 349 bps plus floating interest in the first quarter 2023, to a weighted interest margin of 300 bps to 325 bps plus floating interest.
Commitments for all the transactions are expected to be established by the end of the second quarter of 2023, and the refinancing is expected to be completed by the end of the third quarter.
KMC Properties is an Oslo-based real estate company focusing on industrial and logistic properties in the Nordics and the Netherlands.
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