KMC Properties has today successfully placed new senior secured bonds of NOK 900 million, representing the final part of the refinancing of its NOK 1,850 million senior secured bond issue ("Existing Bond Issue"), a refinancing and cancellation of its NOK 200 million revolving credit facility, and funds for general corporate purposes. The new debt of a total of NOK 2,080 million, of which more than half is new committed bank loans, will result in an overall interest margin of 3.34 per cent plus floating interest of the company's total debt of approximately NOK 3,470 million, down from 3.49 per cent plus floating interest in the first quarter this year. "We are very pleased to secure full refinancing well ahead of the maturity of our current bond loan, and at the same time reduce the overall interest margin of our debt in a challenging macro environment. The accomplishments are results of an expansion strategy with well-rooted investment criteria. The new financing framework will convert more than half of our current bond loan to low margin bank debt, representing a step-change for our company," says Liv Malvik, CEO of KMC Properties. The new debt is a mix of NOK 1,080 million committed bank loans with a volume weighted interest margin of 2.71 per cent plus floating interest, a senior secured bond issue of NOK 900 million with a coupon of 5.00 per cent plus 3 months NIBOR, and a shareholder loan from existing shareholders of up to NOK 100 million at an interest margin of 4.25 per cent plus 3 months NIBOR. All transactions in relation to the new financing structure and bond refinancing is expected to be completed in July 2023. "The new financing structure makes us well positioned to continue pursuing value accretive investments, delivering a steady increase in EBITDA, and long-term growth beyond our current 2024 targets. We will also continue to optimize our capital structure with an ambition to further reduce our overall interest margin, and especially our bond margin," Malvik ends. At the end of the first quarter 2023, KMC Properties had a property portfolio of 65 properties across the Nordics and Netherlands valued at NOK 6.0 billion (GAV) and a loan to value (EPRA) of 57 per cent. Based on the new financing structure and the current floating interest levels, the Company's total debt will yield net interest costs of approximately NOK 211 million, while the portfolio is expected to yield a rental income of NOK 412 million (excluding KPI adjustments) over the next twelve months, providing running cash flows to leverage for further growth. With its solid tenants, local presence, risk mitigating contractual frameworks and continued low OPEX, KMC Properties is set to continue its value accretive growth towards its target of reaching NOK 8.0 billion GAV at the end of 2024, and furthermore towards its long-term vision of becoming the preferred real estate partner for logistic and industrial companies. New senior secured bond issue details: Size: NOK 900 million Tenor: 3 years Coupon: 3 months NIBOR + 5.00 per cent Issue Price: 98.70 per cent of par (3 months NIBOR + 5.50 per cent equivalent) Payments: Quarterly Expected Settlement: 6 July, 2023 Following closing of the new bond financing, a call option notice will be issued for repayment for the remaining outstanding bonds in the Existing Bond Issue at the relevant call option price of 101 per cent of par value. DNB Markets, Pareto Securities and SpareBank 1 Markets acted as Joint Lead Managers for the bond issue. For further information, please contact: Kristoffer Holmen, CFO, tel. +4792814862 Christian Linge, Investment manager, tel. +4746637846 Charlotte Knudsen, Media contact, tel. +4797561959 Information in this announcement is considered inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to MAR article 17 and Section 5-12 the Norwegian Securities Trading Act. This announcement was published by Kristoffer Holmen of KMC Properties ASA on 30 June 2023 at 16:15 CEST.