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SATO Corporation announces EUR 300 million senior unsecured bond issuance

Mar 17, 2016

SATO Corporation, Company Announcement, 17th March 2016 at 5:05 pm

SATO Corporation ("SATO") today announces EUR 300 million senior unsecured bond issuance. The bonds have been successfully offered to European investors and are expected to be issued on 24 March 2016.

The order book for the bonds was well oversubscribed and the transaction attracted broad interest also from countries outside the Nordics. The bonds have a 5-year maturity and will bear an annual fixed interest rate of 2.375 percent. The bonds are unsecured and guaranteed by two subsidiaries of SATO.

SATO will apply for listing of the bonds on the Official List of the Irish Stock Exchange and for bonds to be admitted to trading on its regulated market. The bonds are expected to be rated Baa3 by Moody's, in line with SATO Corporation's long-term issuer rating.

The bond issuance is in line with SATO's strategy to move towards a largely unsecured capital structure, and also to ensure a diversified and flexible financing base for supporting SATO group's growth ambitions.

Comment from SATO's CFO Esa Neuvonen:

-  Increasing the amount of unsecured financing is advancing well on schedule. Part of the proceeds from this bond issuance will be used to replace secured borrowings which will further increase the amount of unencumbered assets. 

BNP Paribas, Danske Bank, Nordea Markets and Swedbank acted as joint lead managers and global coordinators for the transaction and Handelsbanken Capital Markets and Pohjola Markets acted as joint lead managers and bookrunners.

For more information, please contact:

SATO Corporation 

CFO Esa Neuvonen, tel. +358 40 5001 003
Group Treasurer Janne Runsamo, tel. +358 45 6713 567

Disclaimer

The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of SATO Corporation in any jurisdiction. In particular, this release does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. Any securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration requirements.

SATO is one of Finland's leading rental housing providers. SATO's aim is to offer comprehensive alternatives in rental housing and an excellent customer experience. All told, SATO holds roughly 23,600 rental homes in Finland's largest growth centres and in St Petersburg.

In our operations, we promote sustainable development and initiative-taking, and work in open interaction with our stakeholders to create added value. We operate profitably and with a long-term view. We increase the value of our housing property through investments, divestments and repair work.

SATO Group's net sales in 2015 were €323.4 million, operating profit €196.5 million and profit before taxes €159.4 million. SATO's investment properties have a value of roughly €2.8 billion.