Real estate investment company Fastator has reached an agreement with major bondholders regarding the terms of a comprehensive recapitalization. The deal includes a new bond loan of up to SEK 110 million and a bridge loan of up to SEK 50 million.
"After a period during which Fastator has been under pressure from an excessive debt burden, while the property market has not recovered quickly enough, we can now look ahead thanks to this agreement with the bondholders and seize the opportunity to further develop the company. It has been a tough few years, but with this settlement, both former shareholders and current bondholders will find themselves in a more favorable position. I am very pleased with the agreement and the constructive negotiations we have had with the bondholders. We are optimistic about the future we are now heading towards together," said Anders Mossberg, Chairman of the Board at Fastator.
At the same time, approximately SEK 1.25 billion of existing bond loans will be converted into 12.5 million preference shares, with a subscription price of SEK 100 per share. Remaining debts and interest will be converted into ordinary shares at a subscription price of SEK 1.90 per share. The dilution of ordinary shares is estimated to be around 73 percent.
These measures are expected to increase the company's equity by approximately SEK 400 million. The necessary written procedures have been approved, and the company will now convene an extraordinary general meeting for a final decision.
Furthermore, within 120 days from the issuance of the preference and ordinary shares, Fastator will carry out a rights issue of at least approximately SEK 50 million. The subscription price may not be less than SEK 0.50 per new ordinary share.
