SBB bondholders welcome SEK 7.8bn liquidity boost from EduCo sale
•7 min read
Swedish property company Samhallsbyggnadsbolaget (SBB)’s bondholders were relieved by the news this morning (25 September) that it had sold 1.16% of its EduCo JV to its existing (49%) shareholder Brookfield for around SEK 242m (€20.6m). This raises hopes that 2024 and 2025 maturities can now be covered. The reversal in fortune comes just two months after talks broke down between the two parties in July over the sale of SBB’s larger 51% stake.
As part of the transaction, EduCo will repay SEK 9.1bn of its SEK 14.5bn intercompany loan from SBB, which will leave SEK 5.5bn outstanding. EduCo will also carry out a potential refinancing of its existing current secured bank debt of around SEK 6.9 billion.
After payment of compensation and transaction costs, SBB will receive around SEK 7.8bn in cash, which it intends to use to address near-term financial commitments, including agreed investment dividends and debt maturities.