On 6 Mar. 2023, Sweden-based property manager Stendörren Fastigheter AB (publ) announced that it intended to repurchase up to SEK 300m of its outstanding hybrid bond of SEK 800m. On Friday 10 Mar. 2023, the company announced the result of the repurchasing offer, amounting to SEK 287.5m. Nordic Credit Rating (NCR) has applied 100% debt treatment to Stendörren's outstanding hybrid debt since its issuance, and consequently there is no impact on our debt treatment of the remaining amount.
All else being equal, the decrease in volume of outstanding hybrid debt is positive for Stendörren's interest coverage ratio, due to the high coupon rate of the hybrid bond. The impact is limited, however, and our issuer rating on Stendörren is not affected by the repurchase.
This commentary does not constitute a rating action.
Contacts:
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com