D. Carnegie & Co has entered into an agreement regarding repayment of convertible subordinated loans - Reduces dilution and improves financial net

In order to preven dilution of shares due to conversion of convertible
subordinated loans in D. Carnegie & Co AB (publ) (the ”Company”) – listed on
Nasdaq Stockholm – the Company has entered into a repayment agreement (the
“Agreement”) with the creditor, Svensk Bolig Holding AB (“SBH”), on repayment of
the subordinated loans. The Company will also pay SBH a market-based
compensation for the value of the option. As part of the financing of the
repayment, the Company will convene an extraordinary general meeting to
authorize an issue of new.
In the Company’s acquisition of all the shares in Hyresbostäder i Sverige II AB
from SBH in July 2014, the purchase price was partly paid by way of issuing
three convertible subordinated loans each amounting to MSEK 340, which upon full
conversion correspond to 16 266 230 shares or approximately 19 per cent of the
total number of outstanding shares.

– By repaying the subordinated loans we will prevent the dilution of current
shareholders, which would otherwise arise from the conversion of the
subordinated loans, says Ulf Nilsson, CEO of D. Carnegie & Co, and continues:

 – Moreover, by issuing new shares, we can improve our equity ratio and
financial net.

Pursuant to the Agreement, repayment shall be made in cash on 1 July 2016. SBH
will also receive compensation for the option value of the convertible bonds of
approximately SEK 137 million, which the parties consider to be market-based.
The Company intends to finance the repayment by, inter alia, an issue of new
shares and a bond issue. The earning capacity of the Company is estimated to
increase with approximately MSEK 25 annually due to reduced interest costs if
financing can be implemented as planned.

In accordance with the above, the Company will convenes an extraordinary general
meeting with a proposal to the general meeting to authorize the board of
directors to resolve on a directed issue of Class B shares to new investors of
up to 10 per cent of the total number of outstanding shares. The purpose of the
authorization is to enable the planned repayment of the Subordinated Loans. The
major shareholders of the Company, Kvalitena, will support this decision
For further information, please contact:
Ulf Nilsson, CEO, D. Carnegie & Co

+46 (0)8 121 317 25
About D. Carnegie & Co
D. Carnegie & Co is a property company focusing on residential properties in the
Greater Stockholm region and other growth areas. The company’s business concept
is to own property portfolios slated for a gradual renovation of apartments in
conjunction with the natural turnover of tenants. This can take place quickly
and cost-efficiently thanks to extensive experience from the Bosystem renovation
method which, among other things, means that no evacuation needs to take place.
In addition to this, the company creates value through the development of
building rights in existing portfolios. The market value of the company’s
properties amounted to MSEK 13 600 on 1 December 2015. The total rental value
amounted to MSEK 1 292 on 30 September 2015 annually. The economic occupancy
rate is high – vacancies are virtually non-existent. D. Carnegie & Co is listed
on Nasdaq Stockholm.