Estancia holders give approval to changes to 2014/2019 secured bonds

By Wendy Van Sickle

Columbus, Ohio, April 13 – Estancia Logistik AB (publ) received bondholder approval to amend its SEK 200 million senior secured bonds, issue 2014/2019, according to a notice from Nordic Trustee.

A resolution containing the company’s proposed amendments was passed Tuesday with 98.56% of the votes garnered through a written procedure in its favor.

The company announced the written procedure on March 24. Votes were due by April 18, but the procedure was concluded early, because the requisite majority of votes had already been received. The amendments required a two-thirds majority.

Nordic Trustee & Agency AB (publ) (mail@nordictrustee.se or +46 8 783 79 00) acted as agent.

Amendments

Among other proposed amendments, the issuer asked bondholders to approve the following changes:

• Corem Property Group AB (publ) will replace Estancia as issuer under the bonds;

• The bonds will become unsecured as a result of Corem becoming the new issuer;

• The new issuer will be allowed to issue additional bonds, with the total size of issue (including the original bonds) capped at SEK 750 million;

• The interest rate will be Stibor plus 500 basis points instead of 7˝%;

• The put option, currently exercisable upon a change of control, will be extended to be exercisable upon a delisting event; and

• The call option will be exercisable three months prior to maturity, instead of at any time.

Background

On March 16, Corem entered into share purchase agreements to acquire all shares in Estancia.

The transaction, valued at about SEK 500.32 million, is expected to close by June 1.

The company will pay an upfront consent fee of 6% to bondholders registered as of the closing date of the transaction.

The amendments are conditioned on the Corem transaction being completed by June 1.

Corem is a Stockholm-based real estate company that owns, manages and develops warehouse, logistics, industrial and retail properties in Sweden and Denmark.

Estancia is also focused on warehouse and logistics properties. The company is based in Stockholm.

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