By Rebecca Melvin
New York, Jan. 26 – Heimstaden AB subsidiary Heimstaden Bostad AB priced €800 million of subordinated perpetual hybrid capital securities (BB+) at 99.298 for an annual yield of 2¾%, according to a market source on Tuesday.
The Regulation S securities are non-callable until Feb. 1, 2027, and then they are callable at par until the first reset date and on any interest payment date after that, together with accrued and unpaid interest.
The securities have a fixed interest rate of 2 5/8% until the first reset date on May 1, 2027. The rate resets every five years after that at mid-swaps plus a margin, which is initially 314.9 basis points, and which steps up by 25 bps on May 1, 2032 and by 100 bps on May 1, 2047.
There is also a change-of-control step-up of 500 bps.
Any interest payment may be deferred in whole but not in part at the issuer’s option. They will be mandatorily payable following a discretionary distribution on share capital or parity securities of the issuer, on the next interest payment date, on a redemption or repurchase of the capital securities of the issuer, or upon bankruptcy.
There is a make-whole redemption at par plus a make-whole premium of Bunds plus a margin.
BNP Paribas, Danske Bank, Deutsche Bank, ING and Morgan Stanley are bookrunners of the deal, the proceeds of which will be used for general corporate purposes.
Heimstaden is a real estate company based in Malmo, Sweden.
| Issuer: | Heimstaden Bostad AB
|
| Issue: | Subordinated perpetual hybrid capital securities
|
| Amount: | €800 million
|
| Maturity: | Perpetual
|
| Bookrunners: | BNP Paribas, Danske Bank, Deutsche Bank, ING and Morgan Stanley
|
| Coupon: | 2 5/8% for 6.25 years until reset on May 1, 2027
|
| Price: | 99.298
|
| Yield: | 2¾%
|
| Call: | Make-whole call at par plus make-whole premium of Bunds plus a margin; callable after six years at par
|
| First reset date: | May 1, 2027
|
| Reset margin: | 314.9 bps
|
| Reset step-up: | 25 bps on May 1, 2032 and 100 bps on May 1, 2047
|
| Pricing date: | Jan. 26
|
| Settlement date: | Feb. 1
|
| Rating: | S&P: BB+
|
| Distribution: | Regulation S
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
