SBB - comment
The latest asset sales will leave SBB with cash to refinance maturities to September 26. More liquidity equals more time for SBB. The debt will be 8.7% - 8.9%, expensive and indicative of how far SBB is from accessing the unsecured markets. The loan-to-value ratio at this latest JV will be 55% (SEK5.2bn assets plus SEK3.7bn in additional collateral). Of the SEK5.2bn proceeds, some cash will retire bank debt, but the levels are not yet public. SBB publishes its annual results tomorrow, and successfully rolling bank debt remains critical to SBB’s survival. We will also get a better picture of the level of secured bank debt SBB has and how much cash is available to the company.
The JV is with Castlelake (we do not have the equity shares yet). The SEK5.2bn loan is coming from Castlelake, supported by Atlas Partners.