SEK 300 MILLION UNSECURED BOND ISSUE IN SWEDEN (9634E)
April 15 2011 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 9634E
CLS Holdings PLC
15 April 2011
Release date: 15 April 2011
Embargoed until: 07:00
NOT 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
CLS HOLDINGS PLC
("CLS", THE "COMPANY" OR THE "GROUP")
SEK 300 MILLION ISSUE IN SWEDEN OF UNSECURED BONDS DUE 2016
SEK 204 MILLION DIVIDEND FROM CATENA AB
CLS, 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 GBP29.4million) 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.
The 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.
Carnegie Investment Bank AB in Sweden acted as sole lead manager
and bookrunner.
Separately, on 26 April 2011, CLS is due to receivea dividend of
approximately SEK204 million (GBP20 million) from its 29.9%
associate, Catena AB, following shareholder approval yesterday.
Sten Mortstedt, Executive Chairman of CLS, said:
"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. CLS has property
assets in Sweden and through this bond issue has become established
in the Swedish capital markets.
We are also pleased with the dividend payment from our associate
company Catena AB, which continues to perform well.
These proceeds will strengthen further our substantial liquid
resources available to invest in new opportunities with an increase
of GBP50 million."
-ends-
For further information please contact:
CLS Holdings plc +44 (0)20 7582 7766
www.clsholdings.com
Sten Mortstedt, Executive Chairman
Henry Klotz, Executive Vice Chairman
Richard Tice, Chief Executive Officer
Carnegie Investment Bank AB +46 (0) 8 676 88 00
Smithfield +44 (0)20 7360 4900
Alex Simmons
About CLS
CLS Holdings plc is a commercial property investment company
with assets in London, Sweden France and Germany, which has been
listed on the Main Market of the London Stock Exchange since
1994.
The company invests primarily in office buildings, delivering
stable cash flows.
CLS provides high quality, cost-effective premises to
approximately 400 tenants including leading blue chip corporations
and governments. It operates an efficient, proactive management
approach, working closely with its tenants to meet their individual
requirements.
As at 14 April 2011the company had a market capitalisation of
approximately GBP294 million and at 31 December 2010 its property
portfolio was valued at GBP876.9million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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