The proceeds from the contemplated Bond Issue, together with available funds and an equity injection from the Company’s controlling shareholder, funds managed by Areim, will be used to refinance in full the Company’s senior unsecured floating rate bonds 2020/2025 with ISIN SE0014956454 and an outstanding nominal amount of SEK 275,964,480 (the “2020 Bonds”), senior unsecured floating rate bonds 2021/2025 with ISIN SE0015659636 and an outstanding nominal amount of SEK 725,000,000 (the “2021 Bonds”) and senior unsecured floating rate bonds 2022/2026 with ISIN SE0017565203 and an outstanding nominal amount of SEK 300,000,000 (the “2022 Bonds”, and together with the 2020 Bonds and the 2021 Bonds, the “Existing Bonds”).

In conjunction with the contemplated Bond Issue, Magnolia Bostad is offering holders of Existing Bonds to tender any and all of their Existing Bonds for purchase by Magnolia Bostad for cash at a purchase price equal to 108.00 per cent. of the nominal amount for the 2020 Bonds, 100.00 per cent. of the nominal amount for the 2021 Bonds and 103.10 per cent. of the nominal amount for the 2022 Bonds, in each case plus accrued and unpaid interest (the “Tender Offer”). The Existing Bonds will be repurchased subject to the terms and conditions described in the tender information document dated 21 January 2025 (the “Tender Information Document”) which is available via the following link: https://om.magnoliabostad.se/en/bonds.

The Tender Offer expires at 15:00 CET on 24 January 2025, unless extended, re-opened, withdrawn or terminated at the sole discretion of the Company. Settlement of the Tender Offer is expected to occur in connection with settlement of the Bond Issue. The Tender Offer is in its entirety conditional upon inter alia a successful Bond Issue.

In connection with the allocation of the Bond Issue, Magnolia Bostad will consider, among other factors, whether the relevant investor seeking an allocation in the Bond Issue has, prior to such allocation, validly tendered Existing Bonds pursuant to the Tender Offer, subject to the terms in the Tender Information Document.

Conditional upon a successful Bond Issue, Magnolia Bostad intends to exercise its right to early redemption of the Existing Bonds not being tendered in the Tender Offer, in accordance with the terms and conditions of the Existing Bonds, at the redemption price of 108.00 per cent. of the nominal amount for the 2020 Bonds, 100.00 per cent. of the nominal amount for the 2021 Bonds and 103.10 per cent. of the nominal amount for the 2022 Bonds, in each case plus accrued and unpaid interest up to and including the redemption date.

In connection with the Bond Issue, the Company also provides an update on the discussions to raise equity capital referenced in the Company’s announcement dated 11 November 2024. Due to the contemplated Bond Issue, which as of now will satisfy the Company’s long-term funding requirements, these discussions have been concluded without any agreement. The Company will continue to assess whether and when to recommence such dialogues with equity investors.

The Company’s year-end report for 2024 will be published on 19 February 2025. In connection with the Bond Issue and the Tender Offer, the Company also publishes certain preliminary figures for the fourth quarter of 2024. As of 31 December 2024, total assets amounted to approximately SEK 3,592 million and shareholders’ equity amounted to approximately SEK 914 million, corresponding to an equity ratio of approximately 26 per cent. During the quarter, total assets and shareholders’ equity were negatively impacted by write-downs related to a cancelled joint venture.

Pareto Securities AB is acting as Global Coordinator and Joint Bookrunner and Nordea Bank Abp is acting as Joint Bookrunner for the Bond Issue. The Joint Bookrunners are acting as Dealer Managers in connection with the Tender Offer. Gernandt & Danielsson is acting as legal advisor to the Company.