SBB Norden - comment
The exchange offer is not as popular as SBB hoped, but we expect it to get done. SBB paying the Hybrid deferred interest to exchange bondholders will marginally increase the cash cost; cash leakage will increase by SEK230m (€20m) to SEK675m (€60m). A failure to get the exchange offer away would not be a disaster for SBB. For SUN's holders, the SEK450m cash outflow would not happen (we expect the exchanged bonds to be Hybrids). SBB Equity would take a hit as the option value offered by a reduction in the LTV through the Hybrids would be lost.
The terms of the Exchange showed the company wanted to target the Hybrids and the announcement that Deferred Interest would be paid may help waverers. The offer has been extended to 27th June (from 24th June), giving waverers more time.