Kungsleden refinances €275m to extend debt and reduce risk

Listed Swedish investor Kungsleden has refinanced SEK 2.8 bn (€275 mln) of its bank loans in order to extend its debt term and increase loan-to-value ratios.

The company has agreed bilateral credit facilities through its wholly owned subsidiaries with a total credit commitment of SEK 3.3 bn, including a SEK 1.9 bn loan with Swedbank that will mature within six years.

The other agreement with SEB has a total commitment of SEK 1.4 bn and a maturity of five years. The refinancing will contribute to a positive net proceed of SEK 283 mln after arrangement fees have been deducted.

Kungsleden said it has also restructured its collateral to include fewer properties at a higher LTV ratio. This brings the share of unencumbered assets in its portfolio to 30%.

Biljana Pehrsson, CEO at Kungsleden, said: ‘The refinancing decreases the concentration of debt maturities and extends the average debt maturity while the funding cost is reduced.

‘The new credits will also contribute to increasing the share of unencumbered assets, which means that we come one step closer to the ambition of achieving investment grade status.’


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