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Regulatory press release

Samhällsbyggnadsbolaget i Norden AB: SBB establishes a new joint venture with Castlelake which signs a loan agreement of approximately SEK 5.7 billion

Samhällsbyggnadsbolaget i Norden
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Samhällsbyggnadsbolaget i Norden AB (publ) ("SBB") has agreed to enter into a joint venture, SBB Social Facilities AB ("SBB Social Facilities"), together with funds managed by global alternative investment manager Castlelake, LP ("Castlelake") and supported by ATLAS SP Partners ("ATLAS") (together the "Lenders"). In connection with the establishment of the joint venture, cash proceeds are released through a loan agreement[1] between SBB Social Facilities and the Lenders for approximately SEK 5.7 billion. SBB Social Facilities will use the loan proceeds to acquire properties from SBB, to refinance debt to SBB and to refinance certain external debt (the "Transaction").

SBB Social Facilities acquires the properties from SBB at the market value as of 31 March 2024, amounting to SEK 9.5 billion. The portfolio will be operated and managed by SBB Social Facilities through a management agreement with SBB.

SBB will use the proceeds from the Transaction to enable further strategic measures and to secure long-term stable liquidity.

"The transaction confirms the underlying value of our portfolio. The cash proceeds provide us with further financial flexibility to implement proactive and strategic measures in a structured and thoughtful way", says Leiv Synnes, CEO of SBB.

The Transaction is subject to customary closing conditions. The Transaction is not subject to competition clearance. Closing will occur as soon as all closing conditions have been fulfilled, which is expected to occur in June 2024.

J.P. Morgan, Vinge and Wistrand advised SBB, DLA Piper and CBRE advised Castlelake and CWT and Roschier advised ATLAS.

For further information, please contact:
Helena Lindahl, Treasury Director, ir@sbbnorden.se, press@sbbnorden.se

This information constitutes insider information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 25 May 2024 01:30 CEST.

Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is the Nordic region's leading property company in social infrastructure. The Company's strategy is to long term own and manage social infrastructure properties in the Nordics and rent regulated residential properties in Sweden, and to actively work with property development. Through SBB's commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the Company an attractive long-term partner. The Company's series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm, Large Cap. Further information about SBB is available at www.sbbnorden.se.

[1] STIBOR constitutes base rate for the loan. The interest rate of the loan amounts to STIBOR + 375bps.

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