Business
SEK 300 MILLION UNSECURED BOND ISSUE IN SWEDEN
SEK 300 MILLION UNSECURED BOND ISSUE IN SWEDEN.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 9634E CLS Holdings PLC 15 April 2011 \n \n\nRelease date: 15 April 2011\nEmbargoed until: 07:00\n \n \n \nNOT FOR DISTRIBUTION IN OR TO THE U.S., CANADA, AUSTRALIA, OR JAPAN, OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW\n \nCLS HOLDINGS PLC\n(\"CLS\", THE \"COMPANY\" OR THE \"GROUP\")\nSEK 300 MILLION ISSUE IN SWEDEN OF UNSECURED BONDS DUE 2016\nSEK 204 MILLION DIVIDEND FROM CATENA AB\nCLS, a commercial property investment company listed on the Main Market of the London Stock Exchange with assets in London, Sweden, France and Germany, announces that it has raised SEK300 million (approximately £29.4million) by issuing in Sweden an unsecured and unrated bond due 2016 (the \"Bonds\"). The net proceeds of the Bonds will be employed for general corporate purposes of the Group.\n \nThe Bonds, which will carry a floating rate coupon of 3.75% above three months' STIBOR (being 2.39% as at 14 April 2011), payable quarterly in arrears, will be issued at 100% of their principal amount and will be redeemable at 100% of their principal amount on maturity. The Company will apply for listing of the Bonds on the NASDAQ OMX Stockholm Stock Exchange as soon as reasonably practical, but no later than 30 September 2011. After two years, CLS will have the right to redeem all outstanding Bonds together with accrued interest subject to an early redemption premium to the nominal value.\n \nCarnegie Investment Bank AB in Sweden acted as sole lead manager and bookrunner.\n \nSeparately, on 26 April 2011, CLS is due to receivea dividend of approximately SEK204 million (£20 million) from its 29.9% associate, Catena AB, following shareholder approval yesterday. \n \nSten Mortstedt, Executive Chairman of CLS, said:\n \n\"We have been absolutely delighted with the response in Sweden to our first corporate bond issue which was oversubscribed. We have been keen to develop alternative forms of competitive financing as we believe that traditional bank lending to the property sector will continue to be difficult for some time...