Dear all,
Please note that the commentary sent earlier today regarding the SEK 2.0bn SUN exchange offer related to SBB Norden SUNs and Hybrids was based on information that is 12 months old.
We apologise for the oversight and any confusion this may have caused.
Should you have any questions or wish to discuss further, please don’t hesitate to reach out.
Kind regards,
Aengus
SEK 2.0 bn SUN being offered to SBB Norden SUN and Hybrid holders gives a chance to get closer to the assets and will be attractive. The exchange offer will be via an unmodified Dutch auction satisfied by 80% new notes and 20% cash. The 2027 SUNs and Hybrids trade around 70%, and we expect there will be plenty of demand. The main thrust of the reorganisation of debt is the SEK10.4bn of bank debt that Sveafastigheter is moving closer to the resi assets.
The call shows that SBB slowly continues to rehabilitate its balance sheet. The problems at the Holding Company remain, but SBB has some time
Read MoreIlija Batlja looks to have taken the up-tiering of Hybrids at SBB in December as a template. His personal investment vehicle has
Read MoreThe SBB results were better than we expected operationally, with LFL rental growth of 5.5%, but the balance sheet is still overleveraged, and the holding company is a long way from
Read MoreSBB released a statement this morning that Fir Tree will drop its legal proceedings in relation to its EMTNs. Well played SBB.
Read MoreFir Tree has reassessed the risks of losing its litigation to claim a par repayment and reduced its position accordingly. The success of the recent
Read MoreThe tender and exchange offer from SBB for the SUNs/Hybrids is designed to reduce the impact if the English High Court finds SBB is in breach of the
Read MoreThe tender/exchange offers announced today seem to offer plenty to investors without a significant increase in risk. We suspect this operation has a lot to do with
Read MoreThe additional €53m of EMTN holders seeking to accelerate their holdings makes little difference to the case being heard in the English Hig
Read MoreIf Fir Tree wins the litigation to accelerate the EMTN notes, SBB would immediately have to file for court protection as all EMTN holders
Read MoreSome relief for SBB that the writedown pace is reducing (>SEK5.5bn YTD but <SEK1bn in Q3). SBB needs the Real Estate market to continue to
Read MoreThe latest care home sale is near book value (2% discount), but it is small and extrapolating it to the whole Care Home portfolio may
Read MoreThe Resi business (Sveafastigheter) priced its IPO at the bottom of its SEK39.5 – SEK45.5 per share range. SBB will be glad for the
Read MoreWe doubt any SBB investors were expecting an immediate stream of dividends from the Resi business, and Sveafastigheter (the Resi business) has
Read MoreWe preferred an option that would have seen a strong institutional partner take a stake in the Resi business (rather than an IPO). Lacking anchor
Read MoreThe IPO price range puts the EV at SEK20bn – SEK21bn, a 24% discount to the asset value. The figure is a disappointment as we had
Read More
