This morning’s tender announcement from SBB is in line with the announcement of the Community Asset sale to PPI. As we said at

The latest transaction solves SBB’s liquidity needs out to 2028, so it buys plenty of time. This is a positive for creditors, but it does not

The bond tender at Ilija Batljan’s personal vehicle doesn’t impact SBB. If investors are bounced into exiting the Hybrids at 20%, Batljan could look to repeat the

Sveafastigheter tapping its 2030 SUNs at just above par is a positive for SBB Norden as it demonstrates that the subsidiary companies

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. 

SBB released a statement this morning that Fir Tree will drop its legal proceedings in relation to its EMTNs. Well played SBB.

Fir Tree has reassessed the risks of losing its litigation to claim a par repayment and reduced its position accordingly. The success of the recent

The 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

The 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

The additional €53m of EMTN holders seeking to accelerate their holdings makes little difference to the case being heard in the English Hig

The latest care home sale is near book value (2% discount), but it is small and extrapolating it to the whole Care Home portfolio may

The Resi business (Sveafastigheter) priced its IPO at the bottom of its SEK39.5 – SEK45.5 per share range. SBB will be glad for the

We doubt any SBB investors were expecting an immediate stream of dividends from the Resi business, and Sveafastigheter (the Resi business) has

We preferred an option that would have seen a strong institutional partner take a stake in the Resi business (rather than an IPO). Lacking anchor

The IPO price range puts the EV at SEK20bn – SEK21bn, a 24% discount to the asset value. The figure is a disappointment as we had

If the financial newspaper’s report is accurate, the valuation would be a 15% discount to book value, a disappointing

SBB is going down the IPO route for the Residential business; the company may have failed to find a strategic partner willing to pay up or may want to

A Swedish media report claims that the Resi business will announce an IPO shortly. Given the quiet IPO market, we would be surprised if this