Holmström Fastigheter Holding AB (publ) (the "Company") has instructed the agent for the Company's SEK 500,000,000 senior secured bonds with ISIN SE0015797667 (the "Bonds") to initiate a written procedure to request the bondholders to vote in favour of amending the terms and conditions of the Bonds (the "Written Procedure").

Following the written procedure which concluded during the summer of 2024, the Company has continued its efforts to divest assets in order to repay its outstanding Bonds. However, several events have delayed key divestments, and the Company now anticipates it will be unable to complete ongoing divestment processes in order to meet the scheduled SEK 120 million amortisation due in October 2025.

Furthermore, the Company’s consolidated cash position is insufficient to cover the budgeted cash outflows for the remainder of 2025, given the prevailing level of interest expenses of the Company (including under and in respect of the Bonds).

Although the transaction activity in the Swedish real estate market improved in 2024 compared to the subdued levels of 2022 and 2023, the recovery has been slower than expected. Since the summer of 2024, the Company has been in close dialogue with its transaction advisors to assess the optimal timing for initiating the Company's divestment processes, in anticipation of a stronger market rebound which has yet to materialise.

Despite this, in early 2025, the Company resolved to proceed with the sale of several properties and intends to launch the full portfolio for sale within the year. Based on current market conditions, the sales processes are expected to take approximately six to nine months to complete and are expected to generate net proceeds of approximately SEK 140 million after repayment of associated bank debt, transaction cost and tax.

Moreover, the Company has been in active discussions with potential buyers of its holding in Vincero Fastigheter ("Vincero"), which have concluded that a divestment will require further progression of Vincero’s ongoing zoning plans before being feasible. The largest of these ongoing zoning plans has been delayed and is now expected to enter legal force during early to mid 2026, at which time the Company anticipates that a divestment of its holding can be completed.

Lastly, the Company has also actively pursued discussions regarding divestments of its other holdings. However, these discussions have not materialised and the Company currently deems the realisable value of these holdings to be uncertain. 

To provide sufficient time for the Company to execute ongoing divestments in a prudent manner in order to maximise recoverable value, the Company is seeking certain amendments to the Terms and Conditions, including but not limited to:
a) The removal of mandatory amortisation in October 2025: Removal of the upcoming mandatory amortisation of SEK 120 million due in October 2025 to permit a divestment of the Company’s asset base in an orderly manner.
b) Change from cash interest to PIK interest: In order to address the Company's diminishing cash balance and facilitate a controlled divestment process, the Company is asking to switch the current coupon 3m STIBOR + 5.00% per annum to a PIK coupon of 7.50% per annum.
c) Adjustment of minimum liquidity maintenance covenant: Amendment of minimum Group Liquidity to SEK 10 million. 
d) Cash Sweep: Addition of a mandatory Cash Sweep for Group Liquidity exceeding SEK 25 million, to be applied towards redemption of Bonds at the applicable call premium.

The Company has received undertakings to vote in favour of the request in the written procedure by holders representing approximately 63.5 per cent of the adjusted nominal amount under the Bonds.

The agent will deliver the notice to the Written Procedure to all bondholders on 16 June 2025. The written procedure will commence on 23 June 2025 and end on 7 July 2025. To be eligible to participate in the written procedure a person must fulfil the formal criteria for being a bondholder on 16 June 2025. This means that the person must be registered on a securities account with Euroclear Sweden AB as a direct registered owner (Sw. direktregistrerad ägare) or authorised nominee (Sw. förvaltare) with respect to one or several Bonds.

Pareto Securities AB has been retained as financial advisors in connection with the written procedure. Roschier Advokatbyrå AB has been retained as legal advisor.

The notice to the written procedure is available on the Company's website (https://holmstromfastigheterholding.se/pressmeddelanden/) and on Stamdata (www.stamdata.com).