KMC Properties successfully placed new senior secured bonds of NOK 900 million, representing the final part of the refinancing of its NOK 1,850 million senior secured bond issue (Existing Bond Issue), a refinancing and cancellation of its NOK 200 million revolving credit facility, and funds for general corporate purposes. The new debt of a total of NOK 2,080 million, of which more than half is new committed bank loans, will result in an overall interest margin of 3.34% plus floating interest of the company’s total debt of approximately NOK 3,470 million, down from 3.49% plus floating interest in the first quarter this year. The new debt is a mix of NOK 1,080 million committed bank loans with a volume weighted interest margin of 2.71% plus floating interest, a senior secured bond issue of NOK 900 million with a coupon of 5.00% plus 3 months NIBOR, and a shareholder loan from existing shareholders of up to NOK 100 million at an interest margin of 4.25% plus 3 months NIBOR.

All transactions in relation to the new financing structure and bond refinancing is expected to be completed in July 2023. New senior secured bond issue details: Size: NOK 900 million; Tenor: 3 years; Coupon: 3 months NIBOR + 5.00%; Issue Price: 98.70% of par (3 months NIBOR + 5.50% equivalent); Payments: Quarterly; Expected Settlement: 6 July, 2023. Following closing of the new bond financing, a call option notice will be issued for repayment for the remaining outstanding bonds in the Existing Bond Issue at the relevant call option price of 101% of par value.

DNB Markets, Pareto Securities and SpareBank 1 Markets acted as Joint Lead Managers for the bond issue.