Moody's affirms Castellum's current Baa2 issuer rating with a stable outlook

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Castellum Aktiebolag announced a public offer to acquire Kungsleden Aktiebolag, aiming to integrate both companies. Moody's affirmed Castellum's Baa2 rating with a stable outlook, underlining Castellum's commitment to maintain a loan-to-value ratio under 45% by year's end. The merger could yield annual financial cost synergies of approximately SEK 100 million due to better financing conditions stemming from Castellum's superior credit rating. Castellum holds a property value of around SEK 97 billion and aims for complete climate neutrality by 2030.

Positive

• Moody's affirmed Castellum's Baa2 rating with a stable outlook.
• Potential annual cost synergies of approximately SEK 100 million from the merger.
• Castellum aims to keep its loan-to-value ratio below 45%, indicating strong financial management.

Negative

• None.

GÖTEBORG, Sweden, Aug. 5, 2021 /PRNewswire/ -- Castellum Aktiebolag ("Castellum") announced, on 2 August 2021, a recommended public offer to the shareholders of Kungsleden Aktiebolag ("Kungsleden"), to acquire all shares in Kungsleden (the "Offer"), with the intent to combine the two companies.

As a result of the Offer, Moody's has evaluated Castellum's rating and announced on 4 August that they affirm the company's current rating of Baa2 with a stable outlook, given Castellum's ambition to keep its loan-to-value ratio below 45% by the end of the year.

One of the announced synergies relate to financial costs amounting to approximately SEK 100 million a year, as a result of Castellum having a higher rating than Kungsleden and is thus benefiting from better financing terms and a greater depth in the capital market. With Moody's affirmation of Castellum's rating, the conditions for the realisation of synergies are strengthened as Kungsleden's loans expire.

Moody's press release is available on Castellum's website.

For further information, please contact:

Ulrika Danielsson, CFO Castellum AB, +46 706-47 12 61

About Castellum

Castellum is one of the largest listed property companies in Sweden with a property value of approximately SEK 97 billion. We are located in 14 growth regions in Sweden, as well as Copenhagen and Helsinki. 250,000 people go to work every day in our properties. We develop flexible workplaces and smart logistics solutions with a lettable area of 3.8 million square metres. One of our sustainability goals is to become entirely climate neutral by 2030. Castellum is the only Nordic property and construction company elected to the Dow Jones Sustainability Index (DJSI). The Castellum share is listed on Nasdaq Stockholm Large Cap.

Beyond expectations.

www.castellum.se

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Press release 210805

 

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SOURCE Castellum

FAQ

What is Castellum's public offer for Kungsleden?

Castellum has made a public offer to acquire all shares of Kungsleden to combine the two companies.

What is Moody's rating for Castellum?

Moody's has affirmed Castellum's current rating at Baa2 with a stable outlook.

What financial synergies are expected from the Castellum-Kungsleden merger?

The merger is expected to generate annual cost synergies of approximately SEK 100 million.

What is Castellum's property value?

Castellum's property value is approximately SEK 97 billion.

What sustainability goal does Castellum have?

Castellum aims to become entirely climate neutral by 2030.