Hemfosa asks to amend floaters due 2019, 2020 for proposed spinoff

By Susanna Moon

Chicago, Aug. 13 – Hemfosa Fastigheter AB is seeking consents to amend its senior floating-rate bonds due 2019 and its senior floating-rate bonds due 2020 by way of written procedure.

The amendments are needed for a proposed split of the group into two listed companies, with the issuer focusing on community service properties and a new transaction-based, opportunistic subsidiary named Nyfosa AB, according to an announcement.

The issuer has scheduled a shareholders meeting for Sept. 13 to propose a distribution of the shares in Nyfosa, which is likely to constitute a breach of the disposal of assets clause under the terms of the two series of floaters, the company said.

Hemfosa said it is asking for holder approval to amend the note terms to allow for the distribution.

The base fee will be 0.05%. The early bird fee will be 0.15%.

Holders must send votes by 11 a.m. ET on Aug. 28 to receive the early bird fee.

The solicitation will remain open until 11 a.m. ET on Sept. 6.

The record date for bondholders eligible to vote is Aug. 20. The record date for the base fee is Sept. 17.

The expected payment date of the base fee and early bird fee is Sept. 24.

“The issuer believes that a specialized community service property company will enhance the issuer’s competitiveness and strengthen the conditions for growth, for example, by more clearly investing in project development, specialist expertise for community service properties such as schools, offices, care services and criminal services properties, and strong customer relationships,” the release said.

In order to form a quorum, bondholders representing at least 20% of the adjusted nominal amount must participate in the written procedure. To pass, the company must secure votes in favor of the proposal from holders representing more than 50% of the votes cast.

The solicitation agents are SEB (DCMSyndicate@seb.se or +46 8 506 230 61) and Swedbank (syndicate@swedbank.se or +46 8 700 92 32).

Nordic Trustee & Agency AB (voting.sweden@nordictrustee.com or +46 8 783 79 00) is the agent.

Hemfosa owns, acquires, develops, manages and sells properties and is based in Nacka, Sweden.

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